arbiter
JournalsAccount

Risk Perceptions and Corporate Financing Behavior

Youngmin Choi et al.

Financial Management2026https://doi.org/10.1111/fima.70040article
AJG 3ABDC A*
Weight
0.50

Abstract

Using a recently developed measure of financial market risk perceptions, we show that risk perceptions affect firm‐level corporate financing behavior. Firms tend to adjust their capital structures to cater to investors' appetite for risk. When perceived risks are low, firms tend to choose more leveraged capital structures to take advantage of higher valuations associated with higher risk exposure. When perceived risks are high, firms tend to deleverage to avoid undervaluation associated with higher risk exposure. Furthermore, in periods of low risk perceptions, bond issue announcement returns tend to be higher, whereas long‐run returns tend to decline with leverage.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1111/fima.70040

Or copy a formatted citation

@article{youngmin2026,
  title        = {{Risk Perceptions and Corporate Financing Behavior}},
  author       = {Youngmin Choi et al.},
  journal      = {Financial Management},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/fima.70040},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Risk Perceptions and Corporate Financing Behavior

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.