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Leverage adjustment after mergers and acquisitions

Leverage adjustment after mergers and acquisitions Australian firms have leverage targets. Speeds of adjustment to a target capital structure are higher than previously published estimates when there are major disruptions to firms’ leverage ratios. Firms exploit company‐specific characteristics to achieve these targets. Profitability and cash levels are important drivers of the speeds of adjustment. Firms, which have lower profitability or higher cash levels, appear to adjust faster. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Accounting & Finance Wiley

Leverage adjustment after mergers and acquisitions

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References (45)

Publisher
Wiley
Copyright
Accounting and Finance © 2017 AFAANZ
ISSN
0810-5391
eISSN
1467-629X
DOI
10.1111/acfi.12148
Publisher site
See Article on Publisher Site

Abstract

Australian firms have leverage targets. Speeds of adjustment to a target capital structure are higher than previously published estimates when there are major disruptions to firms’ leverage ratios. Firms exploit company‐specific characteristics to achieve these targets. Profitability and cash levels are important drivers of the speeds of adjustment. Firms, which have lower profitability or higher cash levels, appear to adjust faster.

Journal

Accounting & FinanceWiley

Published: Apr 1, 2017

Keywords: ; ;

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