BazEkon - The Main Library of the Cracow University of Economics

BazEkon home page

Main menu

Author
Berent Tomasz (Warsaw School of Economics, Poland), Jasinowski Sebastian (Warsaw School of Economics, Poland)
Title
Financial Leverage Puzzle - Preliminary Conclusions from Literature Review
Dźwignia finansowa - wstępne wnioski z przeglądu literatury
Source
Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu, 2012, nr 271, t. 1, s. 22-39, tab., bibliogr. 150 poz.
Research Papers of Wrocław University of Economics
Issue title
Zarządzanie finansami firm - teoria i praktyka
Keyword
Dźwignia finansowa, Dług, Struktura kapitału
Financial leverage, Debt, Capital structure
Note
streszcz., summ.
Abstract
Artykuł podejmuje problematykę definicji i pomiaru dźwigni finansowej w literaturze przedmiotu. W tym celu przestudiowano zawartość ponad 30 polskich i anglojęzycznych monografii i podręczników akademickich. Przeanalizowano również ponad 100 artykułów naukowych opublikowanych w prestiżowych anglojęzycznych periodykach z dziedziny finansów i rachunkowości. Badania empiryczne, jak również słowniczki w pozycjach książkowych utożsamiają dźwignię finansową z zadłużeniem, mierząc ją którymś ze wskaźników zadłużenia. W ujęciu tym matematyczna postać wskaźnika wydaje się nie grać większej roli. Ponadto w monografiach i książkach dźwignia finansowa ujmowana jest na wiele sposobów, często opisujących efekty dźwigniowe. W odróżnieniu od literatury zagranicznej polscy autorzy wydają się utożsamiać dźwignię finansową z DFL.(abstrakt oryginalny)

The paper reviews the way financial leverage concept is defined and used in books and research papers. More than 30 finance textbooks from Polish and foreign authors have been screened. In addition, over 100 finance and accounting papers recently published in the leading English finance and accounting journals have been analysed. Empirical research papers as well as the glossaries of textbooks tend to identify leverage with debt or indebtedness. In this approach, little attention is paid to the exact form of a capital structure ratio used. In addition, finance books debate leverage in many various chapters - every time viewing leverage differently. Single most surprising finding of the paper is a big difference between domestic and foreign attitude to DFL.(original abstract)
Accessibility
The Main Library of the Cracow University of Economics
The Library of University of Economics in Katowice
The Main Library of Poznań University of Economics and Business
The Main Library of the Wroclaw University of Economics
Full text
Show
Bibliography
Show
  1. Ahmed A.S., Duellman S., Accounting conservatism and board of director characteristics: an empirical analysis, "Journal of Accounting and Economics" 2007, no. 43.
  2. Ahn S., Denis D.J., Denis D. K., Leverage and investment in diversified firms, "Journal of Financial Economics" 2006, no. 79.
  3. Alti A., How persistent is the impact of market timing on capital structure?, "The Journal of Finance" 2006, no. 61.
  4. Amir E., Guan Y., Oswald D., The effect of pension accounting on corporate pension asset allocation, "Review of Accounting Studies" 2010, no. 15.
  5. Ang A., Chen J., Asymmetric correlations of equity portfolios, "Journal of Financial Economics" 2002, no. 63.
  6. Arnold G., Corporate Financial Management, Prentice Hall, London 2002.
  7. Atanassov J., Kim E.H., Labor and corporate governance: international evidence from restructuring decisions, "The Journal of Finance" 2009, no. 64.
  8. Avramov D., Chordia T., Jostova G., Philipov A., Dispersion in analysts' earnings forecasts and credit rating, "Journal of Financial Economics" 2009, no. 91.
  9. Avramov D., Chordia T., Jostova G., Philipov A., Momentum and credit rating, "The Journal of Finance" 2007, no. 62.
  10. Bae K., Kang J., Wang J., Employee treatment and firm leverage: a test of the stakeholder theory of capital structure, "Journal of Financial Economics" 2011, no. 100.
  11. Ball R., Shivakumar L., Earnings quality in UK private firms: comparative loss recognition timeliness, "Journal of Accounting and Economics" 2005, no. 39.
  12. Banerjee S., Dasgupta S., Kim Y., Buyer-supplier relationships and the stakeholder theory of capital structure, "The Journal of Finance" 2008, no. 63.
  13. Barton J., Who cares about auditor reputation?, "Contemporary Accounting Research" 2005, no. 22.
  14. Bates T.W., Asset sales, investment opportunities, and the use of proceeds, "The Journal of Finance" 2005, no. 60.
  15. Berent T., Financial Leverage Risk - New Definition and Empirical Illustration, [in:] The Risk of Investment Products, From Product Innovation to Risk Compliance, ed. M. Wong, World Scientific Publishing, Hong Kong 2011a.
  16. Berent T., Stopień dźwigni finansowej DFL - dziesięć metod pomiaru, "Przegląd Organizacji" 2010, no. 6.
  17. Berent T., Ten Major Questions on Leverage, Zeszyty Naukowe Uniwersytetu Szczecińskiego nr 640, Finanse, Rynki Finansowe, Ubezpieczenia 38, Wydawnictwo Naukowe Uniwersytetu Szczecińskiego, Szczecin 2011b.
  18. Berk J., DeMarzo NO., Corporate Finance, Pearson, Boston 2007.
  19. Berkman H., Dimitrov V., Jain NO.C., Koch NO.D., Tice S., Sell on the news: differences of opinion, short-sales constraints, and returns around earnings announcements, "Journal of Financial Economics" 2009, no. 92.
  20. Bień W., Zarządzanie finansami przedsiębiorstwa, Difin, Warszawa 2008.
  21. Billett M.T., King T.D., Mauer D.C., Bondholder wealth effects in mergers and acquisitions: New evidence from the 1980s and 1990s, "The Journal of Finance" 2004, no. 59.
  22. Billett M.T., King T.D., Mauer D.C., Growth opportunities and the choice of leverage, debt maturity, and covenants, "The Journal of Finance" 2007, no. 62.
  23. Brealey R.A., Myers S.C., Allen F., Principles of corporate finance, McGraw-Hill, Singapore 2008.
  24. Brigham E.F., Gapenski L.C., Zarządzanie finansami, PWE, Warszawa 2000.
  25. Bris A., Koskinen Y., Corporate leverage and currency crises, "Journal of Financial Economics" 2002, no. 63.
  26. Brown S., Goetzmann W., Liang B., Schwarz Ch., Mandatory disclosure and operational risk: evidence from hedge fund registration, "The Journal of Finance" 2008, no. 63.
  27. Buraschi A., Menini D., Liquidity risk and specialness, "Journal of Financial Economics" 2002, no. 64.
  28. Busaba W.Y., Benveniste L.M., Guo R., The option to withdraw ipos during the premarket: empirical analysis, "Journal of Financial Economics" 2001, no. 60.
  29. Cadenillas A., Cvitani J., Zapatero F., Leverage decision and manager compensation with choice of effort and volatility, "Journal of Financial Economics" 2004, no. 73.
  30. Calegari M.J., The effect of tax accounting rules on capital structure and discretionary Accruals, "Journal of Accounting and Economics" 2000, no. 30.
  31. Campello M., Debt financing: Does it boost or hurt firm performance in product markets?, "Journal of Financial Economics" 2006, no. 82.
  32. Cassar G., Gerakos J., Determinants of hedge fund internal controls and fees, "The Accounting Review" 2010, no. 85.
  33. Chan K., Ikenberry D., Lee I., Economic sources of gain in stock repurchases, "Journal of Financial and Quantitative Analysis" 2004, no. 39.
  34. Chang X., Dasgupta S., Target behaviour and financing: How conclusive is the evidence?, "The Journal of Finance" 2009, no. 64.
  35. Chava S., Purnanandam A., CEOs versus CFOs: Incentives and corporate policies, "Journal of Financial Economics" 2010, no. 97.
  36. Chemmanur T.J., Paeglis I., Simonyan K., Management quality, financial and investment policies, and asymmetric information, "Journal of Financial and Quantitative Analysis" 2009, no. 44.
  37. Childs NO.D., Mauer D.C., Ott S.H., Interactions of corporate financing and investment decisions: The effects of agency conflicts, "Journal of Financial Economics" 2005, no. 76.
  38. Coles J.L., Daniel N.D., Naveen L., Managerial incentives and risk-taking, "Journal of Financial Economics" 2006, no. 79.
  39. Collin-Dufresne N.O., Goldstein R.S., Do credit spreads reflect stationary leverage ratios?, "Journal of Finance" 2001, no. 56.
  40. Czekaj J., Dresler Z., Zarządzanie finansami przedsiębiorstw: Podstawy teorii, Wydawnictwo Naukowe PWN, Warszawa 2005.
  41. Damodaran A., Corporate Finance: Theory and Practice, John Wiley & Sons, New York 2001.
  42. Datta S., Iskandar-Datta M., Raman K., Managerial stock ownership and the maturity structure of corporate debt, "The Journal of Finance" 2005, no. 60.
  43. Davies D., Sztuka zarządzania finansami, McGraw-Hill, PWN, Warszawa 1993.
  44. DeAngelo H., DeAngelo L., Whited T.M., Capital structure dynamics and transitory debt, "Journal of Financial Economics" 2011, no. 99.
  45. Dechow N.O.M., Shakespeare C., Do managers time securitization transactions to obtain accounting benefits?, "The Accounting Review" 2009, no. 84.
  46. DeMarzo N.O.M., Sannikov Y., Optimal security design and dynamic capital structure in a continuous- -time agency model, "The Journal of Finance" 2006, no. 61.
  47. Demersand E., Joos N.O., IPO failure risk, "Journal of Accounting Research" 2007, no. 45.
  48. Dennis N.O., Mayhew S., Risk-neutral skewness: Evidence from stock options, "Journal of Financial and Quantitative Analysis" 2002, no. 37.
  49. Desai M.H., Foley C.F., Hines J.R. Jr., Capital structure with risky foreign investment, "Journal of Financial Economics" 2008, no. 88.
  50. Dębski W., Teoretyczne i praktyczne aspekty zarządzania finansami przedsiębiorstwa, Wydawnictwo Naukowe PWN, Warszawa 2005.
  51. Dhaliwal D., Heitzman S., Zhenli O., Taxes, leverage, and the cost of equity capital, "Journal of Accounting Research" 2006, no. 44.
  52. Dichev I.D., Skinner D.J., Large-sample evidence on the debt covenant hypothesis, "Journal of Accounting Research" 2002, no. 40.
  53. Dictionary of Accounting, ed. R. Hussey, Oxford University Press, Oxford 1999.
  54. Dictionary of Banking and Finance, ed. B. Butler, Oxford University Press, Oxford 1997.
  55. Dilbeck H., A Proposal for precise definitions of 'trading on the equity' and 'leverage': Comment, "Journal of Finance", 1962, no. 17.
  56. D'Souza J., The stock price impact of mandated accounting charges on rate-regulated firms, "Review of Accounting Studies" 2000, no. 5.
  57. Duffie D., Saita L., Wang K., Multi-period corporate default prediction with stochastic covariates, "Journal of Financial Economics" 2007, no. 83.
  58. Duliniec A., Finansowanie przedsiębiorstwa, PWE, Warszawa 2007.
  59. Duliniec A., Struktura i koszt kapitału w przedsiębiorstwie, Wydawnictwo Naukowe PWN, Warszawa 2001.
  60. Eckbo E., Masulis R.W., Norli Y., Seasoned public offerings: resolution of the new issues puzzle, "Journal of Financial Economics", 2000, no. 56.
  61. Ehrhardt M.C., Brigham E.F., Corporate Finance: A Focused Approach, South-Western Centage Learning, Australia 2011.
  62. Ferguson M.F., Shockley R.L., Equilibrium "anomalies", "The Journal of Finance" 2003, no. 58.
  63. Finanse przedsiębiorstwa z elementami zarządzania i analizy, red. M. Wypych, Absolwent, Łódź 1999.
  64. Flannery M.J., Rangan K.NO., Partial adjustment toward target capital structures, "Journal of Financial Economics" 2006, no. 79.
  65. Francis B.B., Hasan I., Hunter D.M., Can hedging tell the full story? Reconciling differences in united states aggregate-and industry-level exchange rate risk premium, "Journal of Financial Economics" 2008, no. 90.
  66. Francis B.B., Hasan I., John K., Waisman M., The Effect of State Antitakeover Laws on The Firm's Bondholders, "Journal of Financial Economics" 2010, no. 96.
  67. Frank M.Z., Goyal V.K., Testing The Pecking Order Theory of Capital Structure, "Journal of Financial Economics" 2003, no. 67.
  68. Gajdka J., Teorie struktury kapitału i ich aplikacja w warunkach polskich, Wydawnictwo Uniwersytetu Łódzkiego, Łódź 2002.
  69. Gao H., Optimal compensation contracts when managers can hedge, "Journal of Financial Economics" 2010, no. 97.
  70. George T.J., Hwang C., A resolution of the distress risk and leverage puzzles in the cross section of stock return, "Journal of Financial Economics" 2010, no. 96.
  71. Giannetti M., Do better institutions mitigate agency problems? Evidence from corporate finance choices, "Journal of Financial and Quantitative Analysis" 2003, no. 38.
  72. Gordon E.A., Joos NO.R., Unrecognized deferred taxes: evidence from the UK, "The Accounting Review" 2004, no. 79.
  73. Goyal V.K., Lehn K., Racic S., Growth opportunities and corporate debt policy: The case of the U.S. defense industry, "Journal of Financial Economics" 2002, no. 64.
  74. Gramlich J.D., McAnally M.L., Thomasi J., Balance sheet management: The case of short-term obligations reclassified as long-term debt, "Journal of Accounting Research" 2001, no. 39.
  75. Grzywacz J., Kapitał w przedsiębiorstwie i jego struktura, Oficyna Wydawnicza SGH, Warszawa 2008.
  76. Gupta A., Liang B., Do hedge funds have enough capital? A value-at-risk approach, "Journal of Financial Economics" 2005, no. 77.
  77. Hackbarth D., Miao J., Morellec E., Capital structure, credit risk, and macroeconomic Conditions, "Journal of Financial Economics" 2006, no. 82.
  78. Hahn J., Lee H., Financial constraints, debt capacity, and the cross-section of stock returns, "The Journal of Finance" 2009, no. 64.
  79. Harford J., Klasa S., Walcott N., Do firms have leverage Targets? Evidence from acquisitions, "Journal of Financial Economics" 2009, no. 93.
  80. Haushalter D., Financing policy, basis risk and corporate hedging. Evidence from oil and gas producers, "The Journal of Finance" 2000, no. 55.
  81. Hawawini G., Viallet C., Finance for executives, managing for value creation, Thompson, South-Western Centage Learning, Australia 2011.
  82. Hay D.C., Knechel W.R., Wong N., Audit fees: A meta-analysis of the effect of supply and demand attributes, "Contemporary Accounting Research" 2006, no. 23.
  83. He Z., A model of dynamic compensation and capital structure, "Journal of Financial Economics" 2011, no. 100.
  84. Hennessy C.A., Livdan D., Debt, bargaining, and credibility in firm-supplier relationships, "Journal of Financial Economics" 2009, no. 93.
  85. Hennessy Ch.A, Whited T.M., Debt dynamics, "The Journal of Finance" 2005, no. 60.
  86. Hennessy Ch.A., Whited T.M., How costly is external financing? Evidence from a structural estimation, "The Journal of Finance" 2007, no. 62.
  87. Hillier D., Grinblatt M., Titman S., Financial Markets and Corporate Strategy, European Edition, McGraw-Hill, London 2008.
  88. Hong G., Sarkar S., Equity systematic risk (beta) and its determinants, "Contemporary Accounting Research" 2007, no. 24.
  89. Hovakimian A., Are observed capital structures determined by equity market timing?, "Journal of Financial and Quantitative Analysis" 2006, no. 41.
  90. Hovakimian A., Hovakimian G., Tehranian H., Determinants of target capital structure: the case of dual debt and equity issues, "Journal of Financial Economics" 2004, no. 71.
  91. Hribar N.O., Jenkins N., The effect of accounting restatements on earnings revisions and the estimated cost of capital, "Review of Accounting Studies" 2004, no. 9.
  92. Hughes J., Liu J., Liu J., On the relation between expected returns and implied cost of capital, "Review of Accounting Studies" 2009, no. 14.
  93. Huizinga H., Laeven L., Nicodeme G., Capital structure and international debt shifting, "Journal of Financial Economics" 2008, no. 88.
  94. Johnston R., Markov S., Ramnath S., Sell-side debt analysts, "Journal of Accounting and Economics" 2009, no. 47.
  95. Ju N., Parrino R., Poteshman A.M., Weisbach M.S., Horses and rabbits? Trade-off theory and optimal capital structure, "Journal of Financial and Quantitative Analysis" 2005, no. 40.
  96. Kahle K.M., Shastri K., Firm performance, capital structure, and the tax benefits of employee stock options, "Journal of Financial and Quantitative Analysis" 2005, no. 40.
  97. Kale J.R., Shahrur H., Corporate capital structure and the characteristics of suppliers and customers, "Journal of Financial Economics" 2007, no. 83.
  98. Keown J., Martin J.H., Petty J.W., Scott D.F., Financial Management: Principles and Applications, Prentice Hall, New York 2005.
  99. Kisgen D.J., Do firms target credit ratings or leverage levels?, "Journal of Financial and Quantitative Analysis" 2009, no. 44.
  100. Korajczyk R.A., Levy A., Capital structure choice: macro economic conditions and financial constraints, "Journal of Financial Economics" 2003, no. 68.
  101. Leary M.T., Bank loan supply, lender choice, and corporate capital structure, "The Journal of Finance" 2009, no. 64.
  102. Leary M.T., Roberts M.R., Do firms rebalance their capital structures?, "The Journal of Finance" 2005, no. 60.
  103. Lee C., Ng D., Swaminathan B., Testing international asset pricing models using implied costs of capital, "Journal of Financial and Quantitative Analysis" 2009, no. 44.
  104. Lemmon M.L., Roberts M.R., Zender J.F., Back to the beginning: persistence and the cross-section of corporate capital structure, "The Journal of Finance" 2008, no. 63.
  105. Lerner J., The new financial thing: the origins of financial innovations, "Journal of Financial Economics" 2006, no. 79.
  106. Lewellen K., Financing decisions when managers are risk averse, "Journal of Financial Economics" 2006, no. 82.
  107. Lisowsky N.O., Seeking shelter: Empirically modeling tax shelters using financial statement information, "The Accounting Review" 2010, no. 85.
  108. Livdan D., Sapriza H., Zhang Lu., Financially constrained stock returns, "The Journal of Finance" 2009, no. 64.
  109. Lui D., Markov S., Tamayo A., What makes a stock risky? Evidence from sell-side analysts' risk ratings, "Journal of Accounting Research" 2007, no. 45.
  110. Machała R., Praktyczne zarządzanie finansami firmy, Wydawnictwo Naukowe PWN, Warszawa 2004.
  111. Mansi S.A., Reeb D.M., Corporate diversification: What gets discounted?, "The Journal of Finance" 2002, no. 57.
  112. Mao C.X., Interaction of debt agency problems and optimal capital structure: Theory and evidence, "Journal of Financial and Quantitative Analysis" 2003, no. 38.
  113. Marosi A., Massoud N., Why do firms go dark?, "Journal of Financial and Quantitative Analysis" 2007, no. 42.
  114. Miao J., Optimal capital structure and industry dynamics, "The Journal of Finance" 2005, no. 60.
  115. Millsand L.F., Newberry K.J., Firms' off-balance sheet and hybrid debt financing: evidence from their book-tax reporting differences, "Journal of Accounting Research" 2005, no. 43.
  116. Mitton T., Stock market liberalization and operating performance at the firm level, "Journal of Financial Economics" 2006, no. 81.
  117. Moles N.O., Parrino R., Kidwell D., Corporate Finance, European Edition, Wiley, 2011.
  118. Molina C.A., Are firms underleveraged? An examination of the effect of leverage on default probabilities, "The Journal of Finance" 2005, no. 60.
  119. Morellec E., Asset liquidity, capital structure, and secured debt, "Journal of Financial Economics" 2001, no. 61.
  120. Morellec E., Zhdanov A., Financing and takeovers, "Journal of Financial Economics" 2008, no. 87.
  121. Myers S., The capital structure puzzle, "Journal of Finance" 1984, no. 39.
  122. Nissim D., Penman S.H., Financial statement analysis of leverage and how it informs about profitability and price-to-book ratios, "Review of Accounting Studies" 2003, no. 8.
  123. Novaes W., Managerial turnover and leverage under a takeover threat, "The Journal of Finance" 2002, no. 57.
  124. Ortiz-Molina H., Executive compensation and capital structure: The effects of convertible debt and straight debt on CEO pay, "Journal of Accounting and Economics" 2007, no. 43.
  125. Ovtchinnikov A.V., Capital structure decisions: Evidence from deregulated industries, "Journal of Financial Economics" 2010, no. 95.
  126. Ovtchinnikov A.V., McConnell J.J., Capital market imperfections and the sensitivity of investment to stock prices, "Journal of Financial and Quantitative Analysis" 2009, no. 44.
  127. Penman S.H., Richardson S.A., Tuna I., The book-to-price effect in stock returns: accounting for leverage, "Journal of Accounting Research" 2007, no. 45.
  128. Peyer U.C., Shivdasan A., Leverage and internal capital markets: evidence from leveraged recapitalizations, "Journal of Financial Economics" 2001, no. 59.
  129. Purnanandam A., Financial distress and corporate risk management: Theory and evidence, "Journal of Financial Economics" 2008, no. 87.
  130. Qiu J., Yu F., The market for corporate control and the cost of debt, "Journal of Financial Economics", 2009, no. 93.
  131. Rajgopal S., Venkatachalam M., Financial reporting quality and idiosyncratic return volatility, "Journal of Accounting and Economics" 2011, no. 51.
  132. Rosett J.G., Equity risk and the labor stock: The case of union contracts, "Journal of Accounting Research" 2001, no. 39.
  133. Ross S.A., Westerfield R.W., Jaffe B.D., Corporate Finance, McGraw-Hill, Boston 1999.
  134. Ross S., Westerfield R., Jordan B., Finanse przedsiębiorstw, Dom Wydawniczy ABC, Warszawa 1999.
  135. Rutkowski A., Zarządzanie finansami, PWE, Warszawa 2007.
  136. Sibilkov V., Asset liquidity and capital structure, "Journal of Financial and Quantitative Analysis" 2009, no. 44.
  137. Stein J.C., Presidential address: Sophisticated investors and market efficiency, "The Journal of Finance" 2009, no. 64.
  138. Strebulaev I.A., Do tests of capital structure theory mean what they say?, "The Journal of Finance" 2007, no. 62.
  139. Sun Q., Tong W.H.S., China Share issue privatization: The extent of its success, "Journal of Financial Economics" 2003, no. 70.
  140. Szyszko L., Szczepański J., Finanse przedsiębiorstwa, PWE, Warszawa 2003.
  141. Subramanyam K.R., Wild J.J., Finacial reporting and analysis, 10th ed., McGraw-Hill, New York 2009.
  142. Tserlukevich Y., Can real options explain financing behavior?, "Journal of Financial Economics" 2008, no. 89.
  143. Tsyplakov S., Investment frictions and leverage dynamics, "Journal of Financial Economics" 2008, no. 89.
  144. Van Horne J.C., Wachowicz J.M., Fundamentals of Financial Management, FT Prentice Hall, Harlow 2005.
  145. Wald J.K., Long M.S., The effect of state laws on capital structure, "Journal of Financial Economics" 2007, no. 83.
  146. Wilmowska Z., Wilmowski M., Sztuka zarządzania finansami, Oficyna Wydawnicza Ośrodka Postępu Organizacyjnego, Bydgoszcz 2001.
  147. Wong J., Wong N., The investment opportunity set and acquired goodwill, "Contemporary Accounting Research" 2001, no. 18.
  148. Zarządzanie finansami przedsiębiorstw, red. N.O. Karpuś, Wydawnictwo UMCS, Lublin 2006.
  149. Zhdanov A., Competitive Equilibrium with Debt, "Journal of Financial and Quantitative Analysis" 2007, no. 42.
  150. Żwirbla A., Dźwignia finansowa - próba krytyki oraz syntezy poglądów, "Zeszyty Teoretyczne Rachunkowości" 2007, no. 41.
Cited by
Show
ISSN
1899-3192
Language
eng
Share on Facebook Share on Twitter Share on Google+ Share on Pinterest Share on LinkedIn Wyślij znajomemu