Resource title

The Effects of Short-Term Liabilities on Profitability: The Case of Germany

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Resource description

Using data from Germany this paper examines the direct effect of non-financial firms' use of short-term versus long-term liabilities. We develop a structural model of a firm's value maximization problem that predicts that profitability of the firm will change if firms alter their use of short-term versus long-term liabilities. We find that firms that rely more heavily on short-term liabilities are likely to be more profitable.

Resource author

Christopher F. Baum, Dorothea Schäfer, Oleksandr Talavera

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/18528

Resource license

Adapt according to the presented license agreement and reference the original author.