Timing of Earnings and Capital Structure

Miglo, Anton (2017) Timing of Earnings and Capital Structure. North American Journal of Economics and Finance, 40. pp. 1-15. ISSN 1062-9408

MigloNAJEFRevised-pastminor2.pdf - Accepted Version

Download (275kB)


This paper shows that asymmetric information about the timing of earnings can affect corporate capital structure. It sheds new light on the following issues: why profitable firms may be interested in issuing equity and why debt does not necessarily signal a firm's quality. These issues seem to be puzzling from the classical pecking-order theory or signalling theory point of view. The paper also contributes to the analysis of the link between capital structure choice and a firm's expected performance (short-term and long-term). An empirical analysis confirms most of our theoretical results.

Item Type: Article
Identification Number: https://doi.org/10.1016/j.najef.2017.01.001
Date: 18 January 2017
Subjects: L100 Economics
N100 Business studies
N200 Management studies
N300 Finance
Divisions: Faculty of Business, Law and Social Sciences > Birmingham City Business School > Department of Accounting, Finance and Economics
Depositing User: Anton Miglo
Date Deposited: 03 Aug 2018 09:55
Last Modified: 18 Jan 2019 03:00
URI: http://www.open-access.bcu.ac.uk/id/eprint/6202

Actions (login required)

View Item View Item


In this section...