SURYA, BUDHI ARTA; YAMAZAKI, KAZUTOSHI - In: International Journal of Theoretical and Applied … 17 (2014) 02, pp. 1450013-1
The optimal capital structure model with endogenous bankruptcy was first studied by Leland (1994) and Leland & Toft (1996), and was later extended to the spectrally negative Lévy model by Hilberink Rogers (2002) and Kyprianou Surya (2007). This paper incorporates scale effects by allowing the...