after the introduction of TARP and the rescue of AIG. Anxiety about European debt markets saw the systemic risk begin to …

This paper provides evidence that keiretsu group member firms are subject to lowereffective tax rates than independent … financially reported income amongaffiliates in order to reduce overall effective tax rates. Empirical evidence supports this …

volatility smirk, both for time series and cross sections of companies. These results may help to disentangle the leverage effect …

effects of equal magnitude, and leverage, which refers to the negative correlation between the returns shocks and subsequent …

effects of equal magnitude, and leverage, which refers to the negative correlation between the returns shocks and subsequent …

effects of equal magnitude, EGARCH can also accommodate leverage, which is the negative correlation between returns shocks and …

on conditional volatility of positive and negative effects of equal magnitude, and leverage, which is the negative … between asymmetry and leverage, as well as which asymmetric models are purported to be able to capture leverage, the purpose … appropriate regularity conditions; and (2) to show that leverage is not possible in these univariate conditional volatility models. …

assets is a main determinantof corporate leverage. To establish this link, our analysis uses an instrumental variables … driver of leverage for firms that are likely to face creditfrictions (small, unrated firms). Our tests also show that asset …

’s optimal security-issuance choice trades off the flexibilitybenefit of equity against the now-familiar debt tax shield, and the … financed. Debt offers little flexibility relativeto equity. However, the flexibility offered by equity depends on the extent to …’s stock price, implying that firms issue equity when stockprices are high and debt when stock prices are low. The theory …