Alderson, Michael; Bansal, Naresh; Betker, Brian - In: Review of Quantitative Finance and Accounting 43 (2014) 3, pp. 423-440
Financial theory holds that firms can control agency costs through the use of short-term and secured debt. We examine the relation between the use of secured debt and the incentive of the manager to increase the risk of the firm, as measured by vega. We find that firms utilize secured debt to a...
