Open AccessCapital Structure Shifts And Recession: An Empirical Investigation
Author(s) -
Rakesh Duggal,
Michael C. Budden
Publication year - 2011
Publication title -
journal of business and economics research
Language(s) - English
Resource type - Journals
eISSN - 2157-8893
pISSN - 1542-4448
DOI - 10.19030/jber.v9i12.6602
Subject(s) - recession , span (engineering) , debt , economics , monetary economics , keynesian economics , finance , engineering , civil engineering
This study investigates whether the 2007-2009 recession impacted the capital structures of U.S. corporations. Investigating all non-financial firms in the S&P 500 Index, the study finds that by boosting their book equity via dividend cuts and some debt reductions, firms kept book leverage unchanged.