文章基本信息

标题：DOWNWARD SLOPING DEMAND CURVES FOR STOCK AND LEVERAGE
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作者：Pei Fun Liem
期刊名称：Jurnal Manajemen dan Kewirausahaan (Journal of Management and Entrepreneurship)
印刷版ISSN：1411-1438
出版年度：2006
卷号：8
期号：2
页码：78-94
DOI：10.9744/jmk.8.2.pp. 78-94
语种：English
出版社：Institute of Research and Community Outreach - Petra Christian University
摘要：This research attempts to investigate the effect of downward sloping demand curves for stock on firms' financing decisions. For the same size of equity issuance, firms with steeper slope of demand curves for their stocks experience a larger price drop in their share price compare to their counterparts. As a consequence, firms with a steeper slope of demand curves are less likely to issue equity and hence they have higher leverage ratios. This research finds that the steeper the slope of demand curve for firm's stock, the higher the actual leverage of the firm. Furthermore, firms with a steeper slope of demand curves have higher target leverage ratios, signifying that these firms prefer debt to equity financing in order to avoid the adverse price impact of equity issuance on their share price.
关键词：slope of demand curves for stocks; leverage; financing decisions.