Aug 2026· Journal of Economics, Finance and Accounting Studies· 0 citations
Abstract
Using 53,121 U.S. firm-year observations from 1989 through 2024, I estimate target cash holdings and leverage ratios and measure deviations from these targets as excess cash and excess debt capacity, respectively, for internationally diversified firms. I find that internationally diversified firms hold significantly higher excess cash and excess debt capacity than domestic firms, consistent with greater information asymmetry and weaker external monitoring. More importantly, internationally diversified firms adjust more slowly toward their target cash and leverage levels. This effect is mitigated by product market competition, and the results are robust to an instrumental-variable approach addressing the endogeneity of diversification. Overall, my findings suggest that international diversification impedes firms' ability to adjust toward optimal financial policies, with implications for capital structure and liquidity management in multinational firms.
We examine the determinants of capital structure for S&P 500 firms over the recent 25 years from 2000 to 2024. Using both traditional regression models and machine-learning approaches, we investigate how firm fundamentals and macroeconomic conditions jointly shape firms’ leverage decisions. Across several empirical met...
C. N. V. Krishnan, Yue Lang· Journal of finance issues· 0 citations
This study examines the moderating role of liquidity in the relationship between extreme capital structure and firm performance among listed firms in emerging markets. It is motivated by the need to better understand how financing constraints and liquidity management influence firm performance in environments character...
Owen Ncube, G. Marozva· International Journal of Fin...· 0 citations
Using a sample of U.S. firm‐year observations, we document a positive association between brand capital and the speed of leverage adjustment. This relationship is stronger among firms that exhibit greater opacity in their information disclosure, weaker governance, and more rigid financial constraints. The results are...
Tong-Xia Li, Chun Lu, Lei Xu et al.· Accounting & Finance· 0 citations
This study examines the relationship between fintech credit and corporate cash holdings in a global context. Using a sample of 17,930 firms across 30 countries, we find a significant negative relationship between fintech credit and cash holdings. We further provide evidence that fintech credit negatively influences fir...
Manoja Behera, Jitendra Mahakud· Australian Journal of Manage...· 0 citations
We examine how state ownership and CEO financial incentives jointly condition the market valuation of acquisition‐related leverage adjustments in 2251 completed M&A deals by Chinese A‐share listed acquirers (2013–2023). Acquirers draw on spare financing capacity at deal completion, with larger leverage increases amon...
Chungsheng Lin, Joseph C. P. Shieh, Hao Fang et al.· Economics & Politics· 0 citations
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