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This paper empirically examines how debt covenants impact the capital structure choices of firms, by utilizing an exogenous accounting based shock to the distance to covenant violation. We find that, on average, the shock to debt capacity had a positive impact on the debt choices of all treated...
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states can meet their obligations. State finances are analyzed according to five dimensions of solvency: cash, budget, long …
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finances are analyzed according to five dimensions of solvency: cash, budget, long-run, service-level, and trust fund. These …
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