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Seize the moment: Opportunism in Australian capital markets

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  • Koh, SzeKee
  • Durand, Robert B.
  • Watson, Iain
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    Abstract

    This paper examines theories of capital structure using a dataset of listed Australian companies from 1993 to 2005. Companies appear to have target leverage but they take advantage of favorable firm characteristics to achieve these targets. Issuers issue debt when they are profitable. When firms are profitable and perform well in the market, they will issue both debt and equity.

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    Bibliographic Info

    Article provided by Elsevier in its journal Pacific-Basin Finance Journal.

    Volume (Year): 19 (2011)
    Issue (Month): 4 (September)
    Pages: 374-389

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    Handle: RePEc:eee:pacfin:v:19:y:2011:i:4:p:374-389

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    Web page: http://www.elsevier.com/locate/pacfin

    Related research

    Keywords: Capital structure Opportunistic behavior Dynamic leverage behavior;

    References

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