removing a bias for leveraged capital structures, the tax cut foregoes debt’s superiority on at least three dimensions: 1 … distress. In addition to creating these “benefits,” however, the tax cut can also increase governance costs. For example, by … public good), competitive forces may not fully counter the tax cut’s governance consequences. …

’ target financial leverage and the speed of adjustment to it in two transition economies, the Czech Republic and Bulgaria. We … explicitly model the adjustment of companies’ leverage to a target leverage, and this target leverage is itself explained by a … under investigation. Bulgarian companies adjusted much faster to the target leverage than Czech firms. The speed of …

-specific and the effects of ownership structure on firm performance cannot be delineated from its effects on leverage. More …

cannot be delineated from its effects on leverage. As such, the results presented here confirm and extend the essential …

measured by the entrenchment effects of group affiliation) tend to have a higher level of debt. Firms with higher foreign … ownership or with low institutional ownership tend to have lower debt level. We do not find any significant relationship between …

This essay is a contribution to the empirical literature on the effect of inflation tax on capital structure. A simple …