Examination of Optimal Leverage Point for Lodging Firms

The Impact of the Recent Recession on U.S. Lodging Firms: An Examination Based on Ratio Analysis

Deviation from Target Leverage and Leverage Adjustment Speed in Firms with Small Positive Earnings

This study investigates whether deviation from target leverage (leverage adjustment speed) in firms with small positive earnings (i.e., SPOS) is higher (slower) than that of other firms. We find evidence suggesting that managers of SPOS manipulate sales, production processes, and discretionary expenses to avoid reporting losses. Our results show that deviation from target leverage in SPOS is hi...

Optimal Leverage from Non-ergodicity

In modern portfolio theory, the balancing of expected returns on investments against uncertainties in those returns is aided by the use of utility functions. The Kelly criterion offers another approach, rooted in information theory, that always implies logarithmic utility. The two approaches seem incompatible, too loosely or too tightly constraining investors’ risk preferences, from their respe...

Credit Fluctuations and Lodging Firms: An Investigation of the Differing Capital Structures in the US Lodging Industry

Export Intensity and Financial Leverage of Indian firms

The export sector is considered an important sector for developing countries; hence it is important to understand the behavior of exporting firms. This paper looks at the financial structure of such firms and investigates plausible relationships between export status and leverage. If product demand from abroad has a low correlation with domestic demand, we would expect export-intensive firms to...