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