Hess, Dieter; Immenkötter, Philipp - Institut für Finanzmarktforschung, Wirtschafts- und … - 2011
regime switching model with a state-dependent cash flow process to capture macroeconomic risk in a firm's cash flow. Our … ratios, benefits to leverage, and costs of operating at a non-optimal leverage. If macroeconomic risk decreases, i … change in macroeconomic risk since the late 1980s and common capital structure adjustments in recessions and around turning …