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Financial institutions, asymmetric information and capital structure adjustments

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  • Ripamonti, Alexandre

Abstract

Capital structure studies of financial institutions have observed identical facts to those of non-financial corporations, especially in relation to capital structure adjustments (dynamic trade-off theory) and asymmetric information. This study examined data from 64 NYSE-listed financial corporations for 91 quarters through Johansen-Fisher panel cointegration model. The target capital structure was measured by the average D/E for the entire period and asymmetric information was measured by Corwin-Schultz´s S_2.

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  • Ripamonti, Alexandre, 2020. "Financial institutions, asymmetric information and capital structure adjustments," The Quarterly Review of Economics and Finance, Elsevier, vol. 77(C), pages 75-83.
    • Handle: RePEc:eee:quaeco:v:77:y:2020:i:c:p:75-83
    DOI: 10.1016/j.qref.2020.01.010
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