This paper examines the relationship between stock returns and the sources of corporate debt during the financial … bank debt or bonds affected stock returns during the credit crunch. Our results indicate that the firms which rely entirely … on bank debt significantly outperformed the firms with public debt amidst the crisis. This finding suggests that bank …

Models based on asymmetric information predict that debt is least sensitive to private information and cannot explain … the illiquidity of corporate debt in secondary markets. We analyze security design with moral hazard and offer a new … hazard problem, but makes debt less liquid than equity. Debt illiquidity covaries with credit risk …

to a 0.44 percent decline in stock prices. Second, results point to the "irrelevance" of debt in mediating the effect of … the role of debt for oil firms. …