underlying mechanisms differ. The tax shield incentivises debt financing as it reduces tax payments to the government. The …Systemically important banks are subject to at least two departures from the neutrality of debt versus equity financing …: the tax deductibility of interest payments and implicit funding subsidies. This paper fills a gap in the literature by …

leverage and product-market competition as predictors of financial distress hazard; and lack of attention to frailty as a … a managerial effort problem, mitigated by leverage and product-market competition as substitute disciplining devices … effect of leverage on financial distress hazard is inverted-U-shaped; (ii) the effect of the competition is U-shaped; and …

activities. For this purpose, I propose a novel measure of synthetic leverage, which can be estimated based on publicly available … information. In the empirical application, I show that German equity funds have increased their risk-taking via synthetic leverage …

policy on bank-level lending and leverage by drawing on a single natural experiment. In 1920, when U.S. monetary policy was … stance. Macroprudential policy caused both bank-level lending and leverage to fall significantly (by 11%-14%), whereas LAW …