Dynamic Capital Structure Choice: Theory and Tests
构建了一个考虑重组成本的动态资本结构模型，推导出最优动态重组政策，并用企业债务比率区间作为实证指标，检验了理论预测。
This paper develops a model of dynamic capital structure choice in the presence of recapitalization costs. The theory provides the optimal dynamic recapitalization policy as a function of firm-specific characteristics. We find that even small recapitalization costs lead to wide swings in a firm's debt ratio over time. Rather than static leverage measures, we use the observed debt ratio range of a firm as an empirical measure of capital structure relevance. The results of empirical tests relating firms' debt ratio ranges to firm-specific features strongly support the theoretical model of relevant capital structure choice in a dynamic setting.