political risk. We focus on two choice variables, the leverage and the ownership structure of the foreign affiliate, and we … analysis we find that, as political risk increases, the ownership share always decreases, whereas leverage can both increase or …

higher leverage if they are privately-controlled and if they are regulated by an independent regulatory agency. Moreover, we … find that the leverage of these firms has a positive and significant effect on their regulated prices, but not vice versa … privately-controlled firms use leverage strategically to shield themselves against regulatory opportunism. …

We study bargaining at the end of high-stakes poker tournaments, in which participants often negotiate a division of … the prize money rather than bear the risk of playing the game until the end. This setting is ideal for studying bargaining …: the stakes are substantial, there are no restrictions on the negotiations or the terms of a deal, outside options are …

We analyze the optimal debt structure of multinational corporations choosing between centralized or decentralized …

financed. Debt offers little flexibility relative to equity. The flexibility offered by equity depends, however, on the extent … high. The firm’s optimal security-issuance choice trades the flexibility benefit of equity against the now-familiar debt …, and depends on the firm’s stock price, implying that firms issue equity when stock prices are high, and debt when stock …

their leverage in response to stochastic changes in firm value. It is shown that capital structure dynamics lower optimal … initial leverage ratios but increase both fair credit spreads and expected default probabilities for moderate levels of … such as asset volatility, the growth rate, the effective corporate tax rate, debt call features and transactions costs. We …

turnover and low leverage, which may lower systematic risk exposures. To examine this possibility, we launch an easily … for leverage-related macroeconomic risks. Because they track macroeconomic aggregates, these mimicking portfolios are …

spikes. We find that the spikes are predominantly financed with debt by large firms and by new equity by small loss …