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This study provides new stylized facts on the determinants of corporate failure and acquisition in Germany. It also offers important lessons for the design of empirical studies. We show that firms experiencing failure or acquisition are significantly different from surviving firms on a number of...
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The frequency with which firms adjust output prices helps explain persistent differences in capital structure across …-price firms, controlling for known determinants of capital structure. Sticky-price firms increased leverage more than exible …
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We study an environment where the capital structure of banks and firms are jointly determined in equilibrium, so as to … balance the benefits of the provision of liquidity services by bank deposits with the costs of bankruptcy. The risk in the …
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