global games methodologies. Contingent convertible bonds are meant to act as a bail-in mechanism for banks, where CoCo debt …

outside the Netherlands, Dutch firms significantly reduced their leverage following the passage of the reform. Our findings … are consistent with the view that corporate governance improvements reduce the value of debt as a disciplining device. …

’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 …

transformation is empirically associated with lower leverage and greater cash holdings, and commonly explained as a precautionary … response to reduced debt capacity. We model how firms' payout and cash holding policies are affected by this shift. Our insight …