The second essay follows up on the first by investigating whether debt repurchase activity is consistent with the existence of an optimal capital structure. I find that the timing and size of debt repurchases are consistent with trade-off theories of capital structure. Specifically, the likelihood and size of debt repurchases is increasing in a firm's deviation from its estimated target. The positive abnormal returns around the announcement of repurchases are increasing in the deviation from the target debt level, consistent with an optimal capital structure.3.4 Univariate Analysis 3.4.1 Firm Characteristics and Debt Structure Different types of firms tend to issue different types of ... Out of all firm- years classified as convertibles, 65% had only one issue during that year and 22% had more than oneanbsp;...
|Title||:||Three Essays on Empirical Corporate Finance|
|Publisher||:||ProQuest - 2007|