Cronqvist, Henrik; Makhija, Anil K.; Yonker, Scott E. - In: Journal of Financial Economics 103 (2012) 1, pp. 20-40
We find that firms behave consistently with how their CEOs behave personally in the context of leverage choices. Analyzing data on CEOs' leverage in their most recent primary home purchases, we find a positive, economically relevant, robust relation between corporate and personal leverage in the...