and corporate liquidity. Firms increase (decrease) their cash to asset ratios by about one and a half percentage point … treatment effect of R&D tax credits increases monotonically with several specific proxies for debt and equity financing … frictions. Increases (cuts) in tax credits also lead to increases (decreases) in the ratios of cash to bank lines of credit and …

-looking market-based risk measures provide significant explanatory power in predicting net leverage changes in excess of accounting …' magnitudes of, and propensity for, net leverage increases. Firms with larger predicted leverage increases outperform firms with …, leverage, and distress risk puzzles, firms with lower predicted leverage increases are riskier but earn lower abnormal returns …

proceeds. Following acquisition, constrained acquirers raise more debt and increase investments, consistent with experiencing …

-like payoff, building up default risk and debt overhang. This paper argues PE-ownership leads to substantially higher levels of … optimal (value-maximizing) leverage, by reducing the expected cost of financial distress. Using data from a large sample of PE … buyouts, I estimate a dynamic trade-off model where leverage is chosen by the PE investor. The model is able to explain both …

opportunity to enforce debt contracts. We identify private-equity (PE) sponsored borrowers in the Shared National Credit Program … understanding heterogeneity in debt contract enforcement and credit constraints faced by distressed borrowers with financial …

low-quality bank-dependent issuers from higher-quality issuers with access to public debt. In a baseline equilibrium with … expensive bank lending, this separation across debt market segments provides information, but equilibrium ratings are …