issuer firms expand their total assets and fixed assets, and also raise their leverage …

their leverage …

leverage effect …

We revisit the relation between equity returns and financial leverage through the lens of a trade-off model with costly … returns depend on whether a firm's leverage is above or below its target leverage. The data support the model predictions …. Controlling for leverage, overlevered (underlevered) firms earn higher (lower) returns. Controlling for target leverage the …

investments (financing asset sales) across the business cycle. Equity financed investment transfers wealth from equity to debt …, hence, transfer wealth back from debt to equity. Exploring the dynamics of the heretofore overlooked “asset sale versus …

formed and how they impact leverage and debt maturity choices. In the model, lending relationships evolve through repeated … interactions between firms and debt investors. Stronger lending relationships lead firms to adopt higher leverage ratios, issue …Lending relationships matter for firm financing. In a model of debt dynamics, we study how lending relationships are …