Information ratings and capital structure Pan, Lee-Hsien, Lin, Chien-Ting, Lee, Shih-Cheng and Ho, Kung-Cheng 2015, Information ratings and capital structure, Journal of corporate finance, vol. 31, pp. 17-32, doi: 10.1016/j.jcorpfin.2015.01.011. Attached Files Name Description MIMEType Size Downloads Title Information ratings and capital structure Author(s) Pan, Lee-Hsien Lin, Chien-Ting orcid.org/0000-0001-6367-3606 Lee, Shih-Cheng Ho, Kung-Cheng Journal name Journal of corporate finance Volume number 31 Start page 17 End page 32 Total pages 16 Publisher Elsevier Place of publication Amsterdam, The Netherlands Publication date 2015-04 ISSN 0929-1199 Keyword(s) Information asymmetry Capital structure Information ratings Pecking order theory Incentive conflicts Summary We examine the impact of information asymmetry on a firm's capital structure decisions with a unique information rating scheme that draws from 114 measures over five dimensions of information disclosures on each firm from 2006 to 2012. We find that a firm with high (low) information rating is related to low (high) debt financing and leverage. In particular, a firm that moves from the lowest to the highest information rating experiences a 7.8% reduction in firm leverage on average. This relationship is robust to firm characteristics, incentive conflicts, and the agreement theory of Dittmar and Thakor (2007). Our results suggest that information asymmetry is in-fluential on a firm's pecking order behavior independent of these effects. Language eng DOI 10.1016/j.jcorpfin.2015.01.011 Field of Research 150201 Finance Socio Economic Objective 900101 Finance Services HERDC Research category C1 Refereed article in a scholarly journal Copyright notice ©2015, Elsevier Persistent URL http://hdl.handle.net/10536/DRO/DU:30078315 Document type: Journal Article Collections: Faculty of Business and Law School of Accounting, Economics and Finance 2018 ERA Submission Related Links Link Description Connect to published version Go to link with your DU access privileges     Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved. Versions Version Filter Type Fri, 11 Sep 2015, 20:35:12 EST Sat, 12 Sep 2015, 05:00:15 EST Tue, 15 Sep 2015, 06:10:37 EST Wed, 23 Sep 2015, 16:21:46 EST Fri, 25 Sep 2015, 14:39:38 EST Wed, 09 Nov 2016, 11:29:25 EST Sat, 13 Jan 2018, 01:30:59 EST Tue, 23 Jan 2018, 11:09:52 EST Filtered Full Citation counts:   Cited 13 times in TR Web of Science Cited 17 times in Scopus Search Google Scholar Access Statistics: 544 Abstract Views, 11 File Downloads  -  Detailed Statistics Created: Fri, 11 Sep 2015, 20:35:12 EST

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