000			02136cam a22003497 4500
001			w17290
003			NBER
005			20211020110820.0
006			m o d
007			cr cnu||||||||
008			210910s2011 mau fo 000 0 eng d
100	1		_aHovakimian, Armen. _913086
245	1	0	_aAre Corporate Default Probabilities Consistent with the Static Tradeoff Theory? / _cArmen Hovakimian, Ayla Kayhan, Sheridan Titman.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2011.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w17290
500			_aAugust 2011.
520	3		_aDefault probability plays a central role in the static tradeoff theory of capital structure. We directly test this theory by regressing the probability of default on proxies for costs and benefits of debt. Contrary to predictions of the theory, firms with higher bankruptcy costs, i.e., smaller firms and firms with lower asset tangibility, choose capital structures with higher bankruptcy risk. Further analysis suggests that the capital structures of smaller firms with lower asset tangibility, which tend to have less access to capital markets, are more sensitive to negative profitability and equity value shocks, making them more susceptible to bankruptcy risk.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aG3 - Corporate Finance and Governance _2Journal of Economic Literature class.
690		7	_aG33 - Bankruptcy • Liquidation _2Journal of Economic Literature class.
700	1		_aKayhan, Ayla. _914079
700	1		_aTitman, Sheridan. _921722
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w17290.
856	4	0	_uhttps://www.nber.org/papers/w17290
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w17290
942			_2ddc _cW-PAPER
999			_c330832 _d289394