Kang, Jangkoo; Kim, Joon-Seok - In: Review of Quantitative Finance and Accounting 27 (2006) 4, pp. 439-463
This paper investigates the leverage choices of an entrenched controlling party. If debt effectively curbs the private benefits of control, the controlling shareholder is given incentives to avoid debt. Using estimates of the private benefits of control and financial statement data from selected...
