significant for firms with low credit quality. These findings suggest that the bank supply shock theory helps explain the …

Default probability plays a central role in the static tradeoff theory of capital structure. We directly test this … theory by regressing the probability of default on proxies for costs and benefits of debt. Contrary to predictions of the … theory, firms with higher bankruptcy costs, i.e., smaller firms and firms with lower asset tangibility, choose capital …

Probability of default plays a central role in the static tradeoff theory of capital structure. We provide a direct … test of this theory by regressing the probability of default, measured by S&P credit ratings and Moody's KMV Expected …. Contrary to predictions of the theory, firms with high bankruptcy costs, that is smaller firms and firms with lower asset …

. These findings suggest that the bank supply shock theory helps to understand the transmission channel of shocks from the …

Many countries' insolvency systems focus on restructuring financial liabilities, and ignore operational liabilities … such as leases and long-term supplier contracts. We model insolvency procedures with and without operational restructuring … operating restructuring is a key aspect of insolvency. …