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

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Abstract

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
Subjects: L100 Economics
N100 Business studies
N200 Management studies
N300 Finance
Divisions: Faculty of Business, Law and Social Sciences > Birmingham City Business School > Dept. Accountancy and Finance
Depositing User: Anton Miglo
Date Deposited: 03 Aug 2018 09:55
Last Modified: 22 Aug 2018 13:10
URI: http://www.open-access.bcu.ac.uk/id/eprint/6202

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