-levering procedure is around for the case of risk-free debt. The procedure for risky debt is much less clear even under very simplifying …

, evident in data from both the U.S. and Europe. Firms with medium leverage avoid risk to preserve the option of issuing safe … by debt-holders due to future risk-taking incentives. Our model offers new insights on the interaction between companies …' debt financing and their risk profiles. …

We examine how debt rollover risk affects firms' capital structure following aggregate economic shocks. Using the COVID …-19 shock and a text-based measure of earnings calls, we find firms increase leverage by 7.4 percentage points when they … are highly exposed to both rollover risk as well as fundamental profitability shocks compared to less exposed firms …

opportunity shock brought about by the Biologics Price Competition and Innovation Act. Using a difference-in-difference approach …

The global economy is in the midst of an unprecedented slump caused by the coronavirus pandemic. This systemic risk …

standard demand shock. We then calibrate the demand shock to generate the computed decline in net revenues associated to the …

crises. In the four years after a negative economic shock, the cumulative loss of capital of high-debt firms is around 15 …