Inflexibility and Capital Structure Decisions
Grant Data
Project Title
Inflexibility and Capital Structure Decisions
Principal Investigator
Dr Gu, Lifeng
(Principal Investigator (PI))
Co-Investigator(s)
Professor Hackbarth Dirk
(Co-Investigator)
Duration
36
Start Date
2018-08-01
Amount
283492
Conference Title
Inflexibility and Capital Structure Decisions
Presentation Title
Keywords
Adjustment cost, Capital structure, Operating inflexibility, Regression discontinuity, Union elections
Discipline
Finance
Panel
Business Studies (B)
HKU Project Code
17505518
Grant Type
General Research Fund (GRF)
Funding Year
2018
Status
Completed
Objectives
1 To investigate the relation between operating flexibility and financial flexibility. 2 To explore how flexible and inflexible firms adjust their financial leverage in response to a positive credit supply shocks induced by staggered state-level bank deregulation. 3 This research proposal attempts to provide an identification strategy by proposing a regression discontinuity design which depends on local exogenous variation in unionization status generated by union elections that pass or fail by only a small margin of votes.