Bhagat, Sanjai; Bolton, Brian; Subramanian, Ajay - In: Journal of Financial and Quantitative Analysis 46 (2012) 06, pp. 1581-1627
We investigate the effects of manager characteristics on capital structure in a structural model. We implement the manager’s optimal contracts through financial securities that lead to a dynamic capital structure, which reflects the effects of taxes, bankruptcy costs, and manager-shareholder...
