How do owner-managers transform resources to create value? Recent work on the framework of resource management—a firm's ability to structure, bundle, and leverage resources—has enhanced the resource-based theory (RBT) of the firm by incorporating testability and measurability and stressing...

We examine the role of firm-level political risk in the capital structure dynamics for the U.S. listed firms from 2002 to 2017. We find that firm-level political risk facilitates firms' speed of adjustment towards its target leverage, and such a positive effect holds for categorical political...

The world economy is engulfed in an economic crisis. In an attempt to avert a repetition of the Great Depression, governments across the globe have borrowed heavily to finance fiscal stimulus packages. Rising debt levels have put the credit ratings of many countries, including those in the...

We analyze the optimal debt structure of multinational corporations choosing between centralized or decentralized borrowing. We identify how this choice is affected by creditor rights and bankruptcy costs, taking into account managerial incentives and coinsurance considerations. We find that...