This paper provides new evidence of how macroeconomic conditions affect capital structure choice. We model firms' target capital structures as a function of macroeconomic conditions and firm-specific variables. We split our sample based on a measure of financial constraints. Target leverage is...

This paper develops a calibrated model that explains the pronounced counter-cyclical leverage patterns observed for firms that access public capital markets, and relates these patters to debt and equity issues. Moreover, it explains why leverage and debt issues do not exhibit this pronounced...

This paper develops a calibrated model that explains the pronounced counter-cyclical leverage patterns observed for firms that access public capital markets, and relates these patterns to debt and equity issues. Moreover, it explains why leverage and debt issues do not exhibit this pronounced...

This paper develops a calibrated model that explains the pronounced counter-cyclical leverage patterns observed for firms that access public capital markets, and relates these patters to debt and equity issues.Moreover, it explains why leverage and debt issues do not exhibit this pronounced...

This paper develops and tests a model of investment that integrates six theories: Tobin's Q, costly external funds, empire building, shirking, debt overhang, and managerial myopia. In contrast to earlier theoretical work that often fails to identify empirically testable hypotheses, we link the...

This paper provides new evidence of how macroeconomic conditions affect capital structure choice. We model firms' target capital structures as a function of macroeconomic conditions and firm-specific variables. We split our sample based on a measure of financial constraints. Target leverage is...

Aggregate public corporate security issues forecast excess returns on stocks, government bonds and corporate bonds. A high ratio of aggregate short term to aggregate long term debt issues and a low ratio of aggregate equity to aggregate debt issues forecasts high excess returns at frequencies...