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

. Crises and recessions often occur independently of domestic leverage, making the credit-to-GDP gap a deficient early …

unweighted leverage requirements, their differential impact on bank lending, and equity buffer accumulation in excess of …. Tighter leverage requirements, on the other hand, increase lending, preserve bank charter value and incentives to accumulate …

the risk of default outweighs the cost advantages of debt financing. In this setting, banks with lower monitoring costs …

market financing, debt or equity financing - seems to be particularly harmful or beneficial for growth. …