Using Firm-Level Leverage as an Investme
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Yaz Gลฑlnur Muradoฤlu; Sheeja Sivaprasad
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Article
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2011
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John Wiley and Sons
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English
โ 215 KB
## ABSTRACT We use an investment strategy based on firmโlevel capital structures. Investing in lowโleverage firms yields abnormal returns of 4.43% per annum. If an investor holds a portfolio of lowโleverage and lowโmarketโtoโbookโratio firms, abnormal returns increase to 16.18% per annum. A portfol