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This study examines the effect of litigation risk and litigation costs on firms' credit ratings and debt financing. The results show that litigation affects a firm's creditworthiness and debt costs in two stages. Before a lawsuit filing, firms at higher risk of litigation have lower credit...
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Genossenschaften organisiert sind, nicht kapitalmarktorientiert.Allerdings zwingt der Wettbewerb an den Finanz- und Gütermärkten …
Persistent link: https://www.econbiz.de/10005863600
In corporate financing, a decision on whether to employ debt or equity in capitalising a corporate entity is a common challenge to financial managers. On what is preferable between equity and debt, studies have been varying. Some studies have shown a firm with high leverage tends to have an...
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I explore the effect of the threat posed by low-cost competitors on debt structure in the airline industry. I use the route network expansion of low-cost airlines to identify routes where the probability of future entry increase dramatically. I find that when a large portion of their market is...
Persistent link: https://www.econbiz.de/10010412667
leverage and product-market competition as predictors of financial distress hazard; and lack of attention to frailty as a … a managerial effort problem, mitigated by leverage and product-market competition as substitute disciplining devices … effect of leverage on financial distress hazard is inverted-U-shaped; (ii) the effect of the competition is U-shaped; and …
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