, economic uncertainty, and risk premia influence firms' financing and default policies. Countercyclical fluctuations in risk … puzzle" and "under-leverage puzzle" in a unified framework. The model generates interesting dynamics for financing and …

consumption, portfolio allocation, financing, investment, and business exit decisions. The optimal capital structure is determined …

investment and financing decisions. In our model, corporate risk management involves internal liquidity management, financial … external cost of financing; 3) the firm's liquidation value; 4) the opportunity cost of holding cash; 5) investment adjustment …

Firms face uncertain financing conditions and are exposed to the risk of a sudden rise in financing costs during … issuance, risk management, and payout policies) for a financially constrained firm facing time-varying external financing costs … financing opportunities also induce firms to rationally time the equity market, even if they have no immediate needs for cash …