search query: @journal_id 56 / total: 1032
reference: 344 / 1032
| Author: | Park, M. |
| Title: | Information content of financial leverage: a comment |
| Journal: | Journal of Business Finance and Accounting
1994 : JAN, VOL. 21:1, p. 151-153 |
| Index terms: | GEARING INFORMATION METHODOLOGY |
| Language: | eng |
| Abstract: | Kim, Shen and Nance in a previous article in this journal (January 1992) classified sample firms into two groups based on the relationship between change in stock prices and financial leverage to test the existence of optimal financial leverage. The inherent weakness of this methodology is that interpretation of test results on the existence of optimal financial leverage can be misleading in the case of series confounding events. The purpose of this comment is to discuss the weakness. |
SCIMA