This paper investigates whether the relative liquidity of a firm's bonds versus its stock affects its capital structure choice. As capital structure decisions involve balancing the costs and benefits of different financing alternatives, the relative liquidity of bonds versus stock plausibly matters since a relative liquidity differential might lead to one financing option being materially (relatively) cheaper than the other. As predicted, we find some evidence that, other things being equal, firms with relatively more liquid bonds compared to stock have higher leverage. While the relationship between bond-stock relative liquidity and leverage is statistically significant, our evidence suggests that it comes with only modest economic importance.

本文研究了公司债券相对于其股票的相对流动性是否会影响其资本结构选择。由于资本结构决策涉及平衡不同融资方案的成本和收益，债券与股票的相对流动性似乎很重要，因为相对流动性差异可能会导致一种融资选择在实质上（相对）比另一种更便宜。正如预测的那样，我们发现一些证据表明，在其他条件相同的情况下，与股票相比，债券流动性相对更高的公司具有更高的杠杆率。虽然债券股票相对流动性和杠杆率之间的关系在统计上是显着的，但我们的证据表明它仅具有适度的经济重要性。