The Distributional Properties of the Debt to Equity Ratio: Some Implications for Empirical Research.
The purpose here is to assess empirically the quasi-supply side model of the firm developed in the paper by Ashton et al. (2004 ) by testing the prediction of the model that the evolution of a firm's debt to equity ratio will be compatible with a non-linear (target adjustment) process whose underlyi...
| Publicado en: | Abacus Vol. 43; no. 2; pp. 111 - 136 |
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| Autores principales: | , , |
| Formato: | Artículo |
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Wiley-Blackwell
Jun2007
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=25129967&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 25129967 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00013072 AUB jtl: Abacus issn: 00013072 maglogo: Y pubinfo: dt: Jun2007 vid: 43 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 25129967 10.1111/j.1467-6281.2007.00222.x ppf: 111 ppct: 25 formats: fmt: @attributes: type: P size: 254KB tig: atl: The Distributional Properties of the Debt to Equity Ratio: Some Implications for Empirical Research. aug: au: Ataullah, Ali Higson, Andrew Tippett, Mark affil: Business School at Lougborough University su: Business forecasting Debt-to-equity ratio Corporate history Prediction theory Ratio analysis Valuation United Kingdom sug: subj: United Kingdom Business forecasting Debt-to-equity ratio Corporate history Prediction theory Ratio analysis Valuation ab: The purpose here is to assess empirically the quasi-supply side model of the firm developed in the paper by Ashton et al. (2004 ) by testing the prediction of the model that the evolution of a firm's debt to equity ratio will be compatible with a non-linear (target adjustment) process whose underlying probability density function possesses no convergent moments. Using a thirty-two-year history of the debt to equity ratio for each of ninety ‘mature’ United Kingdom firms, a non-parametric estimation procedure shows that the debt to equity ratio evolves in terms of a process which is largely consistent with the predictions of this model. In particular, the evolution of the debt to equity ratio is compatible with a ‘long (fat) tailed’ density function with no convergent moments. This has the important implication, supported by our empirical analysis, that the linear dynamic models which characterize empirical work in this area will be mis-specified and will return inconsistent and temporally unstable estimates of the target adjustment process as a consequence. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y custom: Copyright of Abacus is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. item: Abacus holder: Wiley-Blackwell dt: @attributes: year: 2007 holdings: @attributes: islocal: N |
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