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Flexible Prices and Leverage / Francesco D'Acunto, Ryan Liu, Carolin Pflueger, Michael Weber.
- Format:
- Book
- Author/Creator:
- D'Acunto, Francesco.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w23066.
- NBER working paper series no. w23066
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2017.
- Summary:
- The frequency with which firms adjust output prices helps explain persistent differences in capital structure across firms. Unconditionally, the most flexible-price firms have a 19% higher long-term leverage ratio than the most sticky-price firms, controlling for known determinants of capital structure. Sticky-price firms increased leverage more than flexible-price firms following the staggered implementation of the Interstate Banking and Branching Efficiency Act across states and over time, which we use in a difference-in-differences strategy. Firms' frequency of price adjustment did not change around the deregulation.
- Notes:
- Print version record
- January 2017.
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