Similar Search Results

Dynamic capital structure under managerial entrenchment : evidence from a structural estimation

Morellec, Erwan; Nikolov, Boris; Schürhoff, Norman - 2009

choices are too small to explain financing decisions. We also show that by adding agency conflicts in the model and giving the …

Persistent link: https://www.econbiz.de/10003970297

Competition, cash holdings, and financing decisions

Morellec, Erwan; Nikolov, Boris; Zucchi, Francesca - 2013

competition has first order effects on the cash holdings and financing decisions of constrained firms, in ways consistent with our …

Persistent link: https://www.econbiz.de/10010258537

Financing investment: the choice between bonds and bank loans

Morellec, Erwan; Valta, Philip; Zhdanov, Alexei - 2014

We build a model of investment and financing decisions to study the choice between bonds and bank loans in a firm …'s marginal financing decision and its effects on corporate investment. We show that firms with more growth options, higher … issue bonds. We also demonstrate that, by changing the cost of financing, these characteristics affect the timing of …

Persistent link: https://www.econbiz.de/10010258730

Household inequality, corporate capital structure and entrepreneurial dynamism

Braggion, Fabio; Dwarkasing, Mintra; Ongena, Steven - 2014

Economic theories provide conflicting hypotheses on how wealth inequality affects entrepreneurial dynamism. To empirically investigate its impact, we construct local measures of household wealth inequality based on financial rents, home equity, and 1880 farmland. We identify its effects on...

Persistent link: https://www.econbiz.de/10010412298

Threat of entry and corporate debt maturity : evidence from airlines

Parise, Gianpaolo - 2014 - This version: September 29th, 2014

-term financing for lower rollover risk. The results are consistent with models in which firms set their optimal debt structure in the …

Persistent link: https://www.econbiz.de/10010412667

Rollover traps

Della Seta, Marco; Morellec, Erwan; Zucchi, Francesca - 2016

We model the joint effects of debt maturity and cash holdings on default risk. When firms have short-term debt outstanding, negative cash flow shocks lead to a drop in liquid reserves and may cause firms to suffer losses when rolling over their debt, due to weaker fundamentals. This mechanism...

Persistent link: https://www.econbiz.de/10011516024

Levered returns and capital structure imbalances

Ippolito, Filippo; Steri, Roberto; Tebaldi, Claudio - 2017

We revisit the relation between equity returns and financial leverage through the lens of a trade-off model with costly capital structure rebalancing. The model provides a “lookalike” Modigliani-Miller equation that predicts that expected equity returns depend on whether a firm's leverage is...

Persistent link: https://www.econbiz.de/10011899835

News about zero-leverage firms

Geelen, Thomas A. - 2016

I develop a dynamic model of financing decisions and optimal debt maturity choice in which creditors face adverse …

Persistent link: https://www.econbiz.de/10011626255

How valuable is financial flexibility when revenue stops? : evidence from the COVID-19 crisis

Fahlenbrach, Rüdiger; Rageth, Kevin; Stulz, René M. - 2020 - Revised May 17, 2020

Firms with greater financial flexibility should be better able to fund a revenue shortfall resulting from the COVID-19 shock and benefit less from policy responses. We find that firms with high financial flexibility within an industry experience a stock price drop lower by 26% or 9.7 percentage...

Persistent link: https://www.econbiz.de/10012216704

Marking to market corporate debt

Bretscher, Lorenzo; Feldhütter, Peter; Kane, Andrew; … - 2021

Models of capital structure and credit risk make predictions about market valuations of debt, but are routinely tested on the basis of book debt from common data sources. In this paper, we propose to close this gap. We construct a rich data set on firm level debt market valuations by carefully...

Persistent link: https://www.econbiz.de/10012421460