Francis, Bill; Hasan, Iftekhar; Sharma, Zenu - In: Journal of Economics and Business 63 (2011) 6, pp. 558-581
Previous literature documents a negative relationship between leverage and firm growth. This paper finds that once the incentives provided by stock options are accounted for, leverage does not affect firm growth. The paper also finds that the sensitivity of CEOs’ wealth to stock price (i.e....