Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

The Impact of Stock Prices on Capital Structures: A Study on the German Stock Market

Lauenstein, Philipp LU and Reimann, Philipp LU (2013) BUSN89 20131
Department of Business Administration
Abstract (Swedish)
This thesis analyzes the corporate rebalancing behavior of German publicly listed firms subsequent to equity price shocks. The examined period (1990-2012) includes a total sample of 2,154 firm-years. It is found that German firms do not counteract stock induced changes in market-based capital ratios in the short run; whereas managerial rebalancing activity gradually gains importance in the long-term perspective. This behavior is largely in accordance with referential studies on the U.S. and the European stock markets. Further, a life-cycle extension of the applied research model has identified diverging rebalancing intensities across dissimilar corporate maturity classes. It was found, that those differences may be partly explained by... (More)
This thesis analyzes the corporate rebalancing behavior of German publicly listed firms subsequent to equity price shocks. The examined period (1990-2012) includes a total sample of 2,154 firm-years. It is found that German firms do not counteract stock induced changes in market-based capital ratios in the short run; whereas managerial rebalancing activity gradually gains importance in the long-term perspective. This behavior is largely in accordance with referential studies on the U.S. and the European stock markets. Further, a life-cycle extension of the applied research model has identified diverging rebalancing intensities across dissimilar corporate maturity classes. It was found, that those differences may be partly explained by respective adjustment cost levels. (Less)
Please use this url to cite or link to this publication:
author
Lauenstein, Philipp LU and Reimann, Philipp LU
supervisor
organization
course
BUSN89 20131
year
type
H1 - Master's Degree (One Year)
subject
keywords
Stock Returns, Capital Structure Dynamics, Life-Cycle, Fama-MacBeth, Germany
language
English
id
3813469
date added to LUP
2013-06-26 13:52:47
date last changed
2013-06-26 13:52:47
@misc{3813469,
  abstract     = {This thesis analyzes the corporate rebalancing behavior of German publicly listed firms subsequent to equity price shocks. The examined period (1990-2012) includes a total sample of 2,154 firm-years. It is found that German firms do not counteract stock induced changes in market-based capital ratios in the short run; whereas managerial rebalancing activity gradually gains importance in the long-term perspective. This behavior is largely in accordance with referential studies on the U.S. and the European stock markets. Further, a life-cycle extension of the applied research model has identified diverging rebalancing intensities across dissimilar corporate maturity classes. It was found, that those differences may be partly explained by respective adjustment cost levels.},
  author       = {Lauenstein, Philipp and Reimann, Philipp},
  keyword      = {Stock Returns,Capital Structure Dynamics,Life-Cycle,Fama-MacBeth,Germany},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Impact of Stock Prices on Capital Structures: A Study on the German Stock Market},
  year         = {2013},
}