We revisit the well-established puzzle that leverage is negatively correlated with measures of profitability. In … between profitability and leverage is positive. At other times, it is negative. These results are consistent with dynamic … profitability in the quarters prior to rebalancing events match the patterns predicted by these models. Our results are not driven …

examine the role of business cycles on the working capital–profitability relationship using a sample of Finnish listed … companies over an 18-year period. We find the impact of business cycle on the working capital–profitability relationship is more …

, particularly since the 2008 crisis. After some background on QFCs and automatic stays, we provide our joint analysis of the costs …

analyses trends in secondary bond markets, including market liquidity, the role of market makers and the relatively slow …

increased cooperation, only liquidity-constrained firms seem willing to incur the cost of cooperative attempts. …

does not need a high liquidity reserve, but as conditions deteriorate, it will target higher reserve. In very poor … conditions, the firm will declare bankruptcy, usually after it has depleted its liquidity reserve. Our model can predict … liquidity holdings, leverage ratios, yield spreads, expected default probabilities, expected loss given default and equity …

This Paper investigates the impact of ownership patterns on the way the firm is monitored, on the liquidity of its … selection discount required by less informed investors to trade, reducing the firm’s liquidity. Both effects are properly … prices, but the lower liquidity induced by their presence tends to reduce prices. …

Research shows that by enhancing visibility, advertising improves stock liquidity and returns. Unlike stock holders … greater advertising by a firm improves liquidity of its bonds in the market, it does not lower the firm's cost of debt …. However, firms with ineffective advertising experience reduced bond market liquidity and a higher cost of debt. Without a real …

Using a supplier–client matched sample, we study the effect of the 2007–2008 financial crisis on between-firm liquidity … provision. Consistent with a causal effect of a negative shock to bank credit, we find that firms with high precrisis liquidity … consistent with firms providing liquidity insurance to their clients when bank credit is scarce and offer an important …

This paper examines whether a firm's commitment to increase transparency affects firm value and liquidity by studying … firms' voluntary decision to be listed in “special segments” created by Euronext. The empirical analysis finds positive … valuation effects for firms that opted into the special segments and documents positive effects on the liquidity of these firms …