This paper investigates the effect of investment opportunities, audit quality and debt maturity on the interest paid by all-equity firms. Debt holders are likely to charge higher interest to price-protect themselves because of the under-investment and asset substitution problems. All-equity...

We examine how executive equity risk-taking incentives affect firms' choice of debt structure. Using a longitudinal sample of U.S. firms, we document that when executive compensation is more sensitive to stock volatility (i.e., has higher vega), firms reduce their reliance on bank debt...

Objective - This study aims to determine and analyze the effect of financial distress, leverage, free cash flow on earnings management.Methodology/Technique - The object of this research is all companies listed on the Indonesia Stock Exchange with an observation period of 2019. The sample...

We evaluate U.S. firms' leverage determinants by studying how 1,801 firms paid for 2,073 very large investments during the period 1989-2006. This approach complements existing empirical work on capital structure, which typically estimates regression models for a broad set of CRSP/Compustat...

This paper examines the motives of debt issuance in hot-debt market periods and its impact on capital structure over the period 1970–2006. We find that perceived capital market conditions as favorable, an indication of market timing, and adverse selection costs of equity (i.e., information...

This paper investigates the impact of firm leverage on its investment activities. Especially, the research is conducted in the context of the Vietnamese emerging market, an incomplete market in South East Asia with the existence of inefficient market problems such as information asymmetry and...

EBITDA is a commonly-used performance measure for (1) valuation, (2) debt contracting, and (3) executive compensation. The widespread use of EBITDA by stakeholders may induce managers to focus their attention on EBITDA. Since EBITDA excludes various expenses, managers who fixate on EBITDA may...

Determination of structure and correct calculation of a company's capital value is an essential; theoretical and practical problem for corporate finance. The proportion between the company's equity and borrowed capital determines the risk and profitability of the company and, consequently, the...

This study aimed to investigate the nexus between the level of environmental financial accounting practices (EFAP) and cost of capital. The population of this study is 1.188 firm-year observations. However, we excluded 408 firm-year with less than 2 years of information to calculate EFAP, 73...

We investigate the impact of climate policy uncertainty on corporate financing decisions using news-based measures of climate policy uncertainty. We find that an increase in climate policy uncertainty causes firms to reduce leverage. This effect is more pronounced for firms that are financially...