RT info:eu-repo/semantics/article
T1 Target leverage and speed of adjustment along the life cycle of European listed firms
A1 Castro Castro, Paula
A1 Tascón Fernández, María Teresa
A1 Amor Tapia, Borja
A1 de Miguel, Alberto
A2 Economia Financiera y Contabilidad
K1 Economía
K1 Empresas
K1 Finanzas
K1 Capital structure
K1 Target leverage
K1 Firm’s life cycle
K1 Speed of adjustment
AB [EN] This paper analyzes differences in target leverage and speed of adjustment acrossthree life cycle stages of European listed firms: introduction, growth and maturity. We determinethat profitability and tangibility are the most stable determinants, whereas growthopportunities and size exhibit changing effects across stages. The speed of adjustment doesnot increase as the firms evolve, as firms in introduction are able to adjust the fastest. Firmschanging stage adjust leverage at a lower speed, and their target is more affected by profitability,primarily when the change is from growth to maturity. Finally, we confirm the existenceof long-term debt targets, by providing evidence that the next-year target is a relevant factorto explain current debt when firms change from one stage to another.
PB Elsevier
SN 2340-9436
LK https://hdl.handle.net/10612/19320
UL https://hdl.handle.net/10612/19320
NO Castro, P., Tascón Fernández, M. T., Amor-Tapia, B., y Miguel, A. de. (2016). Target leverage and speed of adjustment along the life cycle of European listed firms. BRQ Business Research Quarterly, 19(3), 188–205. https://doi.org/10.1016/J.BRQ.2016.01.003.
DS BULERIA. Repositorio Institucional de la Universidad de León
RD 15-may-2024