Navigating Market Distress: The Role of Information Asymmetry in Capital Structure Decisions
This paper aims to uncover how stock liquidity and analyst coverage, as indicators of information asymmetry, influence the capital structure decisions of companies during market distress, such as the recent COVID-19 pandemic. This assumption is mainly based on the theoretical framework of Pecking Order theory (Myers & Majluf, 1984) and previous empirical research on capital structure and infor