liquidity and liability management more generally …

over faster than domestic assets because the former have desirable liquidity properties, but represent inferior saving …

: a greater share will correspond to a more appreciated exchange rate. Second, under uncertainty, liquidity effects …

instruments used in the sterilization are illiquid or result in fiscal deficits that reduce the liquidity of the private sector … country's international liquidity during the external crisis and reversal, as would be the case with a successful … sterilization, but just a decline in domestic private liquidity. The impact of the latter on relative asset prices creates a sort of …

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 …

We analyze a model of optimal capital structure and liquidity choice based on a dynamic tradeoff theory for financially … introduce a cost of external financing for the firm, which generates a precautionary demand for liquidity and an optimal … liquidity management policy for the firm. An important new cost of debt financing in this context is an endogenous debt …

liquidity may be related positively to the longer-term probability of default. Our empirical analysis confirms these predictions …