AEAweb: Journal Article Full-Text Access
Note to Institutional Subscribers: If you normally access AEAweb journal content via your university or firm's subscription and receive this page, please click
here. The most likely causes of this are a recently changed IP address, a new subscription, or the renewal of a lapsed institutional subscription. This page will stop appearing on the next synchronisation of the document delivery and authentication systems.
You may also click here for pay-per-view, Athens login and other access options .
AEA Members, please click the button below to access the login form:
Covas, Francisco, and
Wouter J. Den Haan. 2011. "The Cyclical Behavior of Debt and Equity Finance."
,
101(2): 877-99.
Show Article Details
DOI: 10.1257/aer.101.2.877
Abstract:Debt and equity issuance are procyclical for most size-sorted firm categories of listed US firms and the procyclicality of equity issuance decreases monotonically with firm size. At the aggregate level, however, the results for equity issuance are not conclusive due to different behavior of the largest firms, especially those in the top one percent. During a deterioration in economic conditions, firms limit the impact of the reduction in external financing on investment by shedding financial assets. This is true for a worsening in aggregate as well as firm-specific conditions. (JEL E32, G32, L11, L25)
Additional links:
Download Data Set |
Online Appendix
Authors:
Covas, Francisco (Federal Reserve Board)
Den Haan, Wouter J. (U Amsterdam)
JEL Classifications:
E32: Business Fluctuations; Cycles
G32: Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure
L11: Production, Pricing, and Market Structure; Size Distribution of Firms
L25: Firm Performance: Size, Diversification, and Scope
If you are an AEA member and do not have an AEAweb login, please
click here.
If you would like to become an AEA member, please see our
membership page.
If you arrived at this page via a journal article link, you will be redirected to the pdf after successful login.
If your first login attempt fails, and you have recently signed up for access or have recently changed your password, you may need to wait a few moments and try again.
Please contact us at
notify@aeaweb.org with any problems or questions.
Contents of Current Issues
June 2013 AER
Spring 2013 JEP
May 2013 AEJ: Policy
May 2013 AEJ: Micro
April 2013 AEJ: Macro
April 2013 AEJ: Applied
March 2013 JEL
Virtual Field Journals
In the News:
An article in the Journal of Economic Perspectives entitled, "The Growth of Finance" by Harvard Business School professors, Robin Greenwood and David Scharfstein, was recently explored by the New York Times and the Wall Street Journal.
U.S. News & World Report cites Princeton-based Burton Malkiel's article in the Journal of Economic Perspectives as a preferred source of "sound financial advice" for investors.
The Huffington Post reports on a study addressing the influence of lifestyle factors on shrinking height in the elderly published in the April issue of AEJ: Applied Economics.
AEA in News Archive
Contact Us
