We develop a dynamic model of investment, capital structure, leasing, and risk management based on firms' need to … collateralize promises to pay with tangible assets. Both financing and risk management involve promises to pay subject to collateral … and lease more, both cross-sectionally and dynamically. Mature firms suffering adverse cash flow shocks may cut risk …

We study the implications of credit market frictions for the dynamics of corporate capital structure and the risk of …

. Regarding the European sovereign debt crisis, the presence of an asymmetric shock was noticed, with the periphery and the centre …

of different companies by assessing the debtor risk profile roughly, using a risk classification system usually … compounded of five risk classes established according to risk methodologies specific for each bank. The cost of capital is … established according to the risk class in which the debtor is included. This study revisits the determinants of the cost of debt …

cost of equity is employed. Assuming no bankruptcy risk and no personal taxes, the proposed revised tax model yields an …