motivation is market timing, providing an excellent framework for studying whether security issues reflect managers' ability to …

, selection does not impede the promotion of behavioral managers. Instead, competitive environments oftentimes promote their …

of financial distress. In theory, this should ease a firm's access to credit. Using a tax-based instrumental variable …

We survey the theory and evidence of behavioral corporate finance, which generally takes one of two approaches. The … securities mispricing. The managerial biases approach studies the direct effects of managers' biases and nonstandard preferences … on their decisions. We review relevant psychology, economic theory and predictions, empirical challenges, empirical …

Default probability plays a central role in the static tradeoff theory of capital structure. We directly test this … theory by regressing the probability of default on proxies for costs and benefits of debt. Contrary to predictions of the … theory, firms with higher bankruptcy costs, i.e., smaller firms and firms with lower asset tangibility, choose capital …