Baum, Christopher; Stephan, Andreas; Talavera, Oleksandr - In: Economic Inquiry 47 (2009) 2, pp. 216-225
"This paper investigates the link between the optimal level of nonfinancial firms' short-term leverage and macroeconomic and idiosyncratic sources of uncertainty. We develop a structural model of a firm's value maximization problem that predicts a negative relationship between uncertainty and...