000			01746nam a22002417a 4500
003			ZW-GwMSU
005			20241128063842.0
008			241128b |||||||| |||| 00| 0 eng d
022			_a0312-8962
040			_aMSU _bEnglish _cMSU _erda
050	0	0	_aHD31 AUS
100	1		_aZhu, Yushu _eauthor
245	1	0	_aDeterminants of long-term debt issuing decisions: _ban alternative approach _ccreated by Yushu Zhu
264	1		_aLos Angeles: _bSage, _c2013.
336			_2rdacontent _atext _btxt
337			_2rdamedia _aunmediated _bn
338			_2rdacarrier _avolume _bnc
440			_aAustralian journal of management _vVolume 38, number 2
520	3		_aThis paper proposes a probit model to test capital structure theories. Our model is designed to circumvent a methodological problem in traditional regression analysis stemming from the use of scaling (e.g., in the form of financial ratios) that has plagued capital structure studies for more than 100 years (Pearson, 1897). Without correction, this problem potentially yields a spurious relation between the dependent and explanatory variables. For example, a negative relationship between capital leverage and firm profitability is concluded in the literature, which is counter to what is observed in reality. Using a sample of leverage increasing cases resulting from public debt issuances in US markets between 1996 and 2006, our probit model results indicate that leverage increasing firms tend to be more profitable. Our finding is consistent with the fact that, in practice, more profitable firms usually have easier access to debt markets.
650			_aCapital structure _vLong-term debt _xSpurios ratio problem
856			_uhttps://doi.org/10.1177/0312896212461640
942			_2lcc _cJA
999			_c168429 _d168429