Arbeitspapier
Cyclical behavior of debt and equity using a panel of Canadian firms
We document the cyclical behavior of debt, equity, and retained earnings for different firm categories using firm-level Canadian data. There is evidence of both procyclical equity and debt issuance for all firm categories but the timing differs. In particular, there is strong evidence that equity issuance increases in anticipation of an expansion. During this phase, some substitution between debt and equity takes place. After the expansion has reached its peak, equity issuance starts to decrease and during this phase there is strong evidence of procyclical debt issuance and some substitution out of equity seems to take place. Retained earnings is procyclical except for small firms.
- Language
-
Englisch
- Bibliographic citation
-
Series: Bank of Canada Working Paper ; No. 2007-44
- Classification
-
Wirtschaft
Business Fluctuations; Cycles
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- Subject
-
Business fluctuations and cycles
Konjunktur
Betriebliche Finanzwirtschaft
Eigenkapital
Fremdkapital
Kapitalerhöhung
Kanada
- Event
-
Geistige Schöpfung
- (who)
-
Covas, Francisco
Haan, Wouter J. den
- Event
-
Veröffentlichung
- (who)
-
Bank of Canada
- (where)
-
Ottawa
- (when)
-
2007
- DOI
-
doi:10.34989/swp-2007-44
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Covas, Francisco
- Haan, Wouter J. den
- Bank of Canada
Time of origin
- 2007
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