search query: @author Maksimovic, V. / total: 17
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| Author: | Maksimovic, V. Stomper, A. Zechner, J. |
| Title: | Capital structure, information acquisition and investment decisions in an industry framework |
| Journal: | European Finance Review
1998 : VOL. 2:3, p. 251-271 |
| Index terms: | FINANCE CAPITAL INVESTMENT |
| Language: | eng |
| Abstract: | This paper analyzes the relationship between a firm's capital structure and its information acquisition prior to capital budgeting decisions. It is found that low-growth industries can sustain a large number of levered firms. In these industries, leverage is negatively related to a firm's incentive to acquire information during the capital budgeting process. In contrast, high-growth industries only sustain a small number of levered firms. In these industries, levered firms acquire more information than all-equity financed firms. |
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