University of Twente Student Theses
Capital structure changes of Amsterdam listed firms during the 2008 financial crisis : market-timing or trade-off behavior?
Veen, René van de (2016) Capital structure changes of Amsterdam listed firms during the 2008 financial crisis : market-timing or trade-off behavior?
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| Abstract: | This thesis answers the question whether Amsterdam listed firms made capital structure changes during the 2008 financial crisis based on trade-off or market-timing behavior. In accordance with the findings of Baker and Wurgler (2002) we find the M/Befwea to have a significant influence on the changes in book leverage ratio. This result is not found for changes in market leverage. To be able to use the M/Befwa model for European listed firms, critical adjustments to the model have been made. Although average book leverage ratios for the sample did not change significantly in the crisis period, firms seemed to be timing the market. The changes in market leverage ratios turned out to be primarily caused by changes in stock prices. No results supporting market-timing or trade-off behavior is found for changes in market leverage ratio. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 83 economics, 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/69136 |
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