to a 0.44 percent decline in stock prices. Second, results point to the "irrelevance" of debt in mediating the effect of … the role of debt for oil firms. …

recent subprime mortgage crisis. Why did the financial markets fail to anticipate the recent debt crisis, despite the large … capital gain, the return on capital and the interest rate. An optimal debt ratio is derived where the drift is probabilistic …, does not depend upon the actual debt/net worth per se. Instead it increases in proportion to the difference between the …

leverage, the optimum and excessive risk and the probability of a debt crisis. The theoretically founded early warning signals … crisis ; optimal leverage and debt ratios ; Congressional Oversight Panel ; Case-Shiller index …

when investment is debt-financed. In such a case a firm pays the creditor not only the sum of annual interest (initial … the investment is debt-financed, the interest payment additionally reduces the corporate tax base. The research findings … optimum debt maturity tends to correlate positively with the corporate tax rate but negatively with the interest rate. In the …

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 …

specifications and controls, we find that a subset of trustee characteristics indeed matters for debt recovery. Thus, ex …

There have been criticisms of debt sustainability analysis in general, including the IMF's own evaluation of the … usefulness of its debt sustainability methodology (e.g., IMF, 2017). This paper's focus is narrow. On the basis of theoretical … arguments and empirical evidence, it argues that the debt-to-GDP ratio is a poor metric for debt management in low …