A new test of capital structure

This paper reports a new test of capital structure theories. It uses a filtering technique to identify large investment spikes. We find that the spikes are predominantly financed with debt by large firms and with new equity by small firms. In the process of financing large projects, firms move signi...

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Bibliographic Details
Main Authors: Mayer, C, Sussman, O
Format: Working paper
Published: University of Oxford 2003