This paper studies conservative debt policies, focusing on firms with no debt (zeroleverage)or with extremely low debt. Examining an unbalanced panel of U.K. firms,we show that debt conservatism is a common, persistent yet puzzling empiricalregularity: nearly 10% of U.K. firms have zero leverage...

We study the eect of the business cycle on optimal capital structure choice and thebenet to leverage. We propose a regime switching model with a state-dependentcash ow process to capture macroeconomic risk in a rm's cash ow. Our modelis parsimonious but still realistic and allows for a wide...

Even 50 years after Modigliani/Miller’s irrelevance theorem, the basic question of how firmschoose their capital structure remains unclear. This survey paper aims at summarizing anddiscussing corresponding recent developments in empirical capital structure research, which,in our view, are...

This article tests the modell of Brander and lewis under ertrand and Cournot competition.

We extend the WACC approach to a tax system having a firm income tax and a personal income tax of the investor as well. We use an artificial tax system incorporating most of the G-7 national tax codes as for example the classical or the imputation systems.