This thesis presents two essays in Corporate Finance. In the first essay, I use the August 2007 crisis episode to gauge the effect of financial contracting on real firm behavior. I identify heterogeneity in financial contracting at the onset of the crisis by exploiting ex-ante variation in...

Capital market represent the market transactions between the company and investor. For investors who invest their funds in shares of a company aims to earn revenue namely dividends. Many factors affect the stock price on the stock exchange, such as price earnings ratio (PER) and cash dividends....