or employment. Using U.S. firm level data, we document systematic patterns of cash and debt financing around lumpy … productivity are leading indicators of the lumpy adjustment. Cash and debt capacity are actively manipulated, and contribute … debt. During and after contractions, firms rebuild cash and reduce debt growth significantly in a concerted effort to …

firms rely heavily on equity financing, even though benefits associated with debt (like tax shields) appear to be high and …. Debt, on the other hand, has an adverse effect on the enforceability of these arrangements because too much debt increases … creditors. Our analysis provides an explanation for why some firms only use little debt financing. Predictions made by our …

By granting intracompany loans to their foreign affiliates, multinational firms may reduce their tax liability abroad … on corporate policy. We find that tightening the regulations in 2001 had some limiting effect on leverage. Foreign …