search query: @indexterm Capital structure of companies / total: 353
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| Author: | Collin-Dufresne, P. Goldstein, R.S. |
| Title: | Do credit spreads reflect stationary leverage ratios? |
| Journal: | Journal of Finance
2001 : OCT, VOL. 56:5, p. 1929-1957 |
| Index terms: | CAPITAL STRUCTURE OF COMPANIES GEARING STOCHASTIC PROCESSES |
| Language: | eng |
| Abstract: | Most structural models of default preclude the firm from altering its capital structure. In practice, firms adjust outstanding debt levels in response to changes in firm value, thus generating mean-reverting leverage ratios. The authors propose a structural model of default with stochastic interest rates that captures this mean reversion. |
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