---
title: Inflation, Capital Structure, and Firm Value
url: https://www.ml-quant.com/papers/ssrn/4849543/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4849543
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4849543
featured: 2024-06-05
citations: unknown
topic: Macro-Finance & Rates
---


# Inflation, Capital Structure, and Firm Value

Companies with higher financial leverage see larger stock returns following a positive inflation surprise, as per a study of nonfinancial Eurozone firms from 2020-2022.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4849543
- Identifier: SSRN 4849543
- Released: 2024-05-31
- First featured: Quant Letter No. 52 (2024-06-05): https://www.ml-quant.com/issues/2024-06-05/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Macro-Finance & Rates

## Related

- [Forecasting China’s Inflation Rate: Evidence from Machine Learning Methods](https://www.ml-quant.com/papers/ssrn/4781171/): Eight machine learning models, notably the gradient boost decision tree and forecast combination model, excel in predicting China's inflation rate over the autoregressive benchmark.
- [Forecasting Inflation Spikes with Machine Learning](https://www.ml-quant.com/papers/ssrn/4610424/): A study using machine learning predicts spikes in the U.S. inflation rate with an accuracy of 87.27%.
- [Dollarized Economies in Latin America. An Inflationary Analysis of Pre, During and Post Pandemic](https://www.ml-quant.com/papers/arxiv/2501.12358/): The paper suggests that dollarization in Latin American countries can guard against inflation, but domestic policies and government action are more crucial for economic stability.
- [Inflation—Who Cares? Monetary Policy in Times of Low Attention](https://www.ml-quant.com/papers/arxiv/2105.05297/): Who Cares?: The decrease in public attention to inflation after the Great Inflation period in the U.S. complicates managing inflation expectations and can lead to inflation-attention traps, suggesting a need to increase the inflation target.
- [Who's at Risk? Effects of Inflation on Unemployment Risk](https://www.ml-quant.com/papers/arxiv/2505.05757/): Inflation driven by supply increases unemployment risks for vulnerable workers, emphasizing the need for inflation control for fair labor market growth.
- [Post-COVID inflation and the monetary policy dilemma: an agent-based scenario analysis](https://www.ml-quant.com/papers/arxiv/2306.01284/): A new modelling approach using the Mark-0 Agent-Based Model explores the impact of regulatory policies on inflationary dynamics resulting from COVID-19-related shocks.