, investment irreversibility, and time-varying risk premia. In my model, firms have a precautionary-savings motive and real options … to wait, both of which interact with time-varying uncertainty and are reinforced by state-dependent risk premia. My model … the observed firm behaviors in high uncertainty states, and (2) time-varying risk premia amplify the impact of the …

investment decision. Second, pecking order theory is superior to agency theory in explaining the managerial behavior in making …

of a 69% increase in required payments to bondholders. We show that public firms with higher exposure to this risk … with an increase in equity payouts. Our estimates imply that the risk of higher financial leverage accounts for about one …

This article studies the effects of tax competition on the provision of public goods under business risk and partial …