Construct · 1 fields · 1 citations

partial adjustment toward target leverage: a standalone construct

One name. One construct. A landmark on the map.

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Corporate finance

firms' tendency to move a fraction of the way each year toward a target debt ratio, with the speed of adjustment measuring how fast.

In corporate finance, partial adjustment toward target leverage refers to firms' tendency to move a fraction of the way each year toward a target debt ratio, with the speed of adjustment measuring how fast. This meaning comes from Flannery (2006) in Journal of Financial Economics.[1]

Unit
Recovery means
Measured by

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Nearby constructs

capital structure4 names · 6 citationsjangle · one leverage choice, rival theories debt3 fields · 3 citationsjingle · one word, three carriers leverage6 fields · 15 citationsjingle · one name, six constructs

References

Flannery, M. J., & Rangan, K. P. (2006). Partial adjustment toward target capital structures. Journal of Financial Economics, 79(3), 469-506. https://doi.org/10.1016/j.jfineco.2005.03.004

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