This paper investigates the effect of investment opportunities, audit quality and debt maturity on the interest paid by all-equity firms. Debt holders are likely to charge higher interest to price-protect themselves because of the under-investment and asset substitution problems. All-equity...

We examine how executive equity risk-taking incentives affect firms' choice of debt structure. Using a longitudinal sample of U.S. firms, we document that when executive compensation is more sensitive to stock volatility (i.e., has higher vega), firms reduce their reliance on bank debt...

We investigate the impact of climate policy uncertainty on corporate financing decisions using news-based measures of climate policy uncertainty. We find that an increase in climate policy uncertainty causes firms to reduce leverage. This effect is more pronounced for firms that are financially...

We examine the effect of auditor litigation risk on firm capital structure decisions by exploiting staggered state-level shocks to third-party auditor legal liability in the United States. We find that an exogenous increase in auditor litigation risk leads to an increase in firm leverage ratios...

Objective - This study aims to determine and analyze the effect of financial distress, leverage, free cash flow on earnings management.Methodology/Technique - The object of this research is all companies listed on the Indonesia Stock Exchange with an observation period of 2019. The sample...

This paper investigates the determinants of capital structure and use of financing for small and medium sized enterprises. Hypotheses utilizing static trade-off and pecking order arguments are empirically examined using a series of firm characteristics including: size, asset structure,...

This paper studies the effects of changes in uncertainty on optimal leverage and investment in a dynamic firm-financing model in which firms have access to complete markets subject to collateral constraints. Entrepreneurs finance projects with their net worth and by issuing state-contingent...

This paper studies strategic behavior in product markets with asymmetric information. A real options model is developed to investigate information revelation and signaling role capital structure. Information revelation is ensured through a learning mechanism that stems from the real options...

This paper shows that asymmetric information about the timing of earnings can affect corporate capital structure. It sheds new light on the following issues: why profitable firms may be interested in issuing equity and why debt does not necessarily signal a firm's quality. These issues seem to...

We document that corporates in emerging markets borrow more in foreign currency when the local currency provides a better hedge in downturns. We develop an international corporate finance model in which firms facing adverse selection choose the foreign currency share of their debt. In the unique...