Internet Appendix for 'Uncertainty, Major Investments, and Capital Structure Dynamics'

Abstract

This internet appendix contains an additional table that is mentioned and described in the paper but was not reported there to preserve space. Specifically, this appendix includes Table IA.I which contains the results of a Difference-in-Differences analysis of how uncertainty changes due to the exogenous shock of the Dot-com Bubble Crash affect firms' capital structure dynamics, i.e., target leverage and speed of adjustment toward the target. Two findings emerge. First, the increase in uncertainty due to the Dot-com Bubble Crash pulls down the target leverage only for firms whose uncertainty increased more during the shock (i.e., treatment firms). Second, over-levered firms whose uncertainty increased more significantly during the shock increased their adjustment speeds significantly, while under-levered counterparts did not.The paper, 'Uncertainty, Major Investments, and Capital Structure Dynamics' may be accessed here: http://ssrn.com/abstract=2732554.