risk. In this model, banks face taxation, flotation costs of securities, and default costs and maximize shareholder value …

I develop a dynamic capital structure model to examine how the nature of risk affects firm's debt policy. In the model …, firm's fundamental risk, captured by its cash flow process, consists of transitory and persistent parts with markedly … different dynamics. The model explains the observed dispersion in the risk-leverage relationship. Firms with similar total …

-debtholder conflicts and induces leveraged firms to invest more and take on less risk as they approach financial distress. To test these … our model, we find that the relation between debt enforcement and firms' investment and risk depends on the firm …-specific probability of default. A difference-in-differences analysis of firms' investment and risk taking in response to bankruptcy …

Bedingungen die Kapitalstruktur eines Unternehmens für das ökonomische Ergebnis relevant ist, wird eine in dieser Form bislang …