Employee Profile

Michael Kisser

Associate Professor - Department of Accounting and Operations Management

Biography

I'm an Associate Professor of Accounting at BI Norwegian Business School in Oslo, Norway.

My main research interest focuses on accounting and corporate finance, with a particular recent interest in the relation between financial reporting and corporate financing decisions. I have published in leading journals such as the Journal of Accounting Research or the Review of Finance and also serve as an associate editor of the Journal of Pension Economics and Finance.




I currently teach courses on Financial Reporting and Analysis (bachelor), Financial Accounting Theory (master) and guest lectures on Pension Accounting under IAS 19 (master).

Link to my personal homepage

Publications

Eckbo, B. Espen & Kisser, Michael (2020)

The leverage-profitability puzzle resurrected

Review of Finance Doi: 10.1093/rof/rfaa032

With zero capital structure rebalancing costs, dynamic trade-off theory predicts that firms stay at their leverage targets with more profitable firms staying at higher leverage. This prediction is rejected by the robustly negative correlation between leverage and profitability. When rebalancing costs are added to this theory, it predicts a positive leverage–profitability correlation only in periods where companies pay these costs and actively rebalance their capital structures. However, we show that the correlation is negative when firms issue debt and distribute the proceeds to shareholders—precisely the case where the theory predicts it should be positive. Our results thus resurrect the leverage–profitability puzzle.

Eckbo, B. Espen & Kisser, Michael (2020)

Tradeoff Theory and Leverage Dynamics of High-Frequency Debt Issuers

Review of Finance Doi: 10.1093/rof/rfaa018

We test whether high-frequency net-debt issuers (HFIs)—public industrial companies with relatively low issuance costs and high debt-financing benefits—manage leverage toward long-run targets. Our answer is they do not: (1) the leverage–profitability correlation is negative even in quarters with leverage rebalancing; (2) the speed-of-adjustment to target leverage deviations is no higher for HFIs than for low-frequency net-debt issuers; and (3) under-leveraged HFIs do not speed up rebalancing activity in significant investment periods. Thus, even in the subset of firms most likely to follow dynamic trade-off theory, the theory does not appear to hold.

Kisser, Michael; Kiff, John & Soto, Mauricio (2017)

Do managers of U.S. defined benefit pension plan sponsors use regulatory freedom strategically?

Journal of Accounting Research, 55(5), s. 1213- 1255. Doi: 10.1111/1475-679X.12182

Kisser, Michael & Kiff, John (2014)

A shot at regulating securitization

Journal of Financial Stability, 10(1), s. 32- 49. Doi: 10.1016/j.jfs.2013.02.003

Kisser, Michael (2013)

The Real Option Value of Cash

Review of Finance, 17(5), s. 1649- 1697. Doi: 10.1093/rof/rfs034

Kisser, Michael & Rapushi, Loreta (2020)

Equity Issues, Creditor Control and Market Timing Patterns: Evidence From Leverage Decreasing Recapitalizations

[Academic lecture]. Annual Meeting of the American Accounting Association.

Kisser, Michael & Rapushi, Loreta (2020)

Equity Issues, Creditor Control and Market Timing Patterns: Evidence From Leverage Decreasing Recapitalizations

[Report]. SSRN.

Eckbo, B. Espen & Kisser, Michael (2019)

The Leverage-Profitability Puzzle Revisited with Costly Rebalancing

[Academic lecture]. Research seminar University of Waterloo.

Eckbo, B. Espen & Kisser, Michael (2019)

The Leverage-Profitability Puzzle Revisited with Costly Rebalancing

[Academic lecture]. Research seminar University of Kentucky.

Kisser, Michael & Axenrod, Michael (2019)

Does Mandatory Recognition of Off-Balance Sheet Items Affect Capital Structure Choice? Evidence from SFAS 158

[Academic lecture]. Northeast Region Meeting of the American Accounting Association.

Kisser, Michael & Rapushi, Loreta (2019)

Equity issues, creditor control and market timing patterns: evidence from leverage decreasing recapitalizations

[Academic lecture]. Northeast Region Meeting of the American Accounting Association.

Kisser, Michael (2018)

Finding market timing patterns when they are unlikely to exist

[Academic lecture]. European Financial Management Association.

Kisser, Michael (2018)

Finding market timing patterns when they are unlikely to exist

[Academic lecture]. Annual Meeting of the German Finance Association.

Kisser, Michael & Rapushi, Loreta (2018)

Finding market timing patterns when they are unlikely to exist

[Report]. Norges Handelshøyskole.

Academic Degrees
Year Academic Department Degree
2010 Vienna University of Economics and Business PhD
2005 Leopold-Franzens Universität Innsbruck Mag. in Business Administration
Work Experience
Year Employer Job Title
2013 - 2019 Norwegian School of Economics Associate Professor
2016 - 2017 Bocconi University Visiting Fellow
2010 - 2013 Norwegian School of Economics Assistant Professor