Acharya, Viral V.; Sundaram, Rangarajan K.; John, Kose - In: Journal of Financial Intermediation 20 (2011) 1, pp. 25-54
We investigate the impact of bankruptcy codes on firms' capital-structure choices. We develop a theoretical model to identify how firm characteristics may interact with the bankruptcy code in determining optimal capital structures. A novel and sharp empirical implication emerges from this model:...
