We use a movie industry project-by-project dataset to analyze the choice of financing a project internally versus financing it through outside alliances. The results indicate that project risk is positively correlated with alliance formation. Movie studios produce a variety of films and tend to...

This paper finds strong support for the argument that heterogeneous adjustment costs significantly affects the speed with which a firm approaches its target capital structure. We find that firms with higher non-debt tax shields (from R&D), and cash holdings adjust faster to their target capital...

We analyze the impact of the bank CEO’s pay-risk sensitivity (‘vega’) on four loan contract terms, loan spreads, existence of collateral, and the number and strictness of covenants. Using a bank-level fixed effects model to control for time-invariant bank characteristics, we find that...