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

balance of three forces: interest rate pass-through, risk shifting, and leverage. When banks can adjust their capital … structures, a monetary easing leads to greater leverage and lower monitoring. However, if a bank''s capital structure is fixed …

finance by estimating the structural parameters of a canonical debt-contracting model with informational frictions. For this … spreads on publicly traded debt for about 900 U.S. firms over the period 1997Q1 to 2003Q3. Using nonlinear least squares, we … the expansionary period 1997-99, but rose sharply in 2000--especially for firms with higher ratios of debt to equity …