capital structure when firms face stochastic revenue shocks. We apply a generalized Nash bargaining solution, which extends … the wage bargaining literature by incorporating efficiency wage considerations, profit-sharing and capital structure. The … offset the negative dilution effect in equilibrium. Leverage is shown to decrease employment and to have a strategic …

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 …

multinational firms show that the tax sensitivity of debt is more modest than what one would expect given the incentives for profit … that pertains to the use of debt. …

Tax provisions favoring corporate debt over equity finance ("debt bias") are widely recognized as a risk to financial … amount, affect corporate debt ratios and mitigate financial stability risk. We find that rules targeted at related party … borrowing (the majority of today's rules) have no significant impact on debt bias - which relates to third-party borrowing. Also …

multinational groups. We model the trade-off between the use of external debt, parental debt and an internal bank. We test the …: (i) smaller firms often rely on parental debt financing; (ii) larger multinationals are more likely to use internal banks …; (iii) parental debt and external debt are substitutes and the mix depends on the relative cost of raising capital through …

-group reallocation of debt to avoid exposure to the rules. We observe sharp bunching among both new and existing subsidiaries at both … thresholds for rule inclusion, and find that internal corporate group debt is offloaded to these bunching subsidiaries in order …

products company to study the influence of small gifts on the outcome of business negotiations. We find that small gifts matter … of their negotiations. However, we also find that small gifts tend to be counterproductive when purchasing and sales …

to study the influence of small gifts on the outcome of business negotiations. We find that small gifts matter. On … their negotiations. However, we also find that small gifts tend to be counterproductive when purchasing and sales agents …