We contribute to the empirical literature on the debt bias of corporate income taxation through a micro …-econometric evaluation of the so-called ACE corporate tax reform in Belgium based on firm-level accounting data. We interpret the tax reform … that came into effect in January 2006 as an economic quasi experiment. We identify its causal impact on the leverage ratio …

We develop a model of the joint capital structure decisions of banks and their borrowers. Strikingly high bank leverage … take on high leverage safely; supply chain effects compel them to do so. Firms with low leverage also arise naturally, as … framework underlie our model, we can quantify the impact capital regulation and other government interventions have on leverage …

Using the staggered introduction of fast-track debt recovery courts in India, we estimate the causal effect of a … reduction in debt contract enforcement costs on financing and asset maturity. A reduction in enforcement costs is associated … with an increase in long-term debt and a decrease in short-term debt and trade-credit. The increase in debt maturity is …

Debt, and in particular, short-term debt have the potential to discipline managers. We examine the role of the board in … stronger boards will force the firm to hold more debt and more short-term debt. Employing a rich dataset of board …

of funding, the results show that bank borrowings are still the most important source of debt financing. However …, retention of earnings gains in importance for German SMEs in comparison to debt financing. …

heavily reliant on internal finance and the quantity and price channels are expected to drive usage of debt. Our findings on … in their region. These results point out that semi-local and national institutions tend to drive away usage of debt due … to monitoring costs or credit rationing, while very local institutions increase the usage of debt through quantity or …

of debt and equity. When defaulting on debt, the firm is punished by disruption of external funding. Such contracts … contrast to the literature on debt as a device of strategic commitment, this result supports the common presumption that equity …

We investigate the interdependence of debt financing and R&D activities of young firms.Using micro-level data of the … characteristics of the founders for explainingyoung firms’ leverage, whereas firm characteristics and human capital of both founders … merely estimating single-equation models for R&D intensity and debt financing... …