Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 30, 2015 erstellt
Description:
In this paper, we re-examine the findings of Strebulaev and Yang (2014) related to zero leverage firms when applied to bottom quintile of small firms. For this paper, we eliminate the 10 million in Total Assets minimum to be included in the Strebulaev and Yang (2014) sample. This change would have increased the Strebulaev and Yang total sample size from about 157,000 observations to about 195,000 observations. We then analyze the bottom quintile based on firm market value. Essentially, Strebulaev and Yang analyze the top four quintiles, while we analyze the bottom quintile. We find many notable differences from Strebulaev and Yang. Our out of sample firms are of course smaller, but also younger and more likely to be technology firms. We find that small firms are roughly twice likely to have zero leverage than larger firms. Our results, vis a vis, dividend payments are also different than Strebulaev and Yang