Intuition suggests that firms with higher cash holdings are safer and should have lower credit spreads. Yet empirically …. Similarly, although firms with higher cash reserves are less likely to default over short horizons, endogenously determined …

distinguish across different asset categories in firms' balance sheets (e.g., machinery, land and buildings) and use an … redeployability is a particularly important driver of leverage for firms that are likely to face credit frictions (e.g., small …, unrated firms). Our tests also show that asset redeployability facilitates borrowing the most during periods of tight credit …

show that tax considerations are a first-order determinant of firms' capital structure choices. Over the period 1990 …-2011, firms increase long-term leverage by 104 basis points on average (or $32.5 million in extra debt) in response to an average …: firms do not reduce leverage in response to tax cuts. Using treatment reversals, we find this to be true even within …

-invariant. All else equal, large firms in emerging markets are more financially vulnerable and also systemically important … large firms are positively and significantly correlated with GDP growth in our emerging markets sample. Relatedly, the … negative impact of exchange rate shocks has a more acute impact on the sales growth of the more highly levered large firms …

allowed firms to retain relatively constant debt equity ratios in the past five years despite strong equity markets. Firms …. It simply is not consistent with the facts. Further research on the form of payments between firms and their shareholders …

This paper discusses how economists' views of firms' financial structure decisions have evolved from treating firms …

which arise from a corporation's financing needs. The menu of financial relationship choices available to firms has varied …

our discussion: firms in one-book countries may be reluctant to claim some tax benefits if reductions in taxable income …

frictions. Firms take their production, financing, and contractual decisions so as to maximize their value under rational … conjectures. We show that competitive equilibria exist and that shareholders always unanimously support firms' choices. In … the part of identical firms and, when equilibria are constrained inefficient, may exhibit excessive aggregate risk …