Seize the moment: opportunism in Australian capital markets

Koh, S.; Durand, Robert; Watson, I.

doi:10.1016/j.pacfin.2011.01.003

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Authors

Koh, S.

Durand, Robert

Watson, I.

Date

2011

Type

Journal Article

Metadata

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Citation

Koh, SzeKee and Duranda, Robert B. and Watson, Iain. 2011. Seize the moment: Opportunism in Australian capital markets. Pacific-Basin Finance Journal. 19 (4): pp. 374–389.

Source Title

Pacific Basin Finance Journal

DOI

10.1016/j.pacfin.2011.01.003

ISSN

0927538X

School

School of Economics and Finance

URI

http://hdl.handle.net/20.500.11937/15226

Collection

Curtin Research Publications

Abstract

This paper examines theories of capital structure using a dataset of listed Australian companies from 1993 to 2005. Companies appear to have target leverage but they take advantage of favorable firm characteristics to achieve these targets. Issuers issue debt when they are profitable. When firms are profitable and perform well in the market, they will issue both debt and equity.