formed and how they impact leverage and debt maturity choices. In the model, lending relationships evolve through repeated … interactions between firms and debt investors. Stronger lending relationships lead firms to adopt higher leverage ratios, issue …Lending relationships matter for firm financing. In a model of debt dynamics, we study how lending relationships are …

This paper provides a model-based analysis of special tax rules for corporations that invest in stocks of other … corporations. To avoid double taxation the returns from such stock investments (dividends and capital gains) are usually tax …-exempted or taxed at a reduced tax rate. This allows for considerable tax avoidance strategies, which are typically ignored when …

) distribution of leverage. In particular, when the leverage ratio is low enough, an increase in a subsidiary's tax rate stimulates …’s tax rate has a positive impact on a subsidiary’s leverage ratio only if its starting leverage ratio is low enough. Finally …, profitability (proxied by ROA) has either a negative or null impact, depending on the leverage ratio and the tax rate used (namely …

adjust at a faster rate toward the leverage target than U.S. firms. These results challenge the generality of the …

. Additionally, our results suggest that financial covenants are designed in a hierarchical manner, with the Debt to EBITDA covenant …

asymmetry considerations. We find that family firms have a strong preference for debt financing, a noncontrol diluting security … ; financing decisions ; equity issues ; debt issues ; capital structure …