Debt-ridden corporate growth and increased vulnerability was one of the causes of the 1997 financial crisis in Korea … even when we control for the leverage regulation effect (ii) enhanced compliance with leverage regulation and thus reduce …

, in particular, long-term debt. An active, though not necessarily large, stock market and a large banking sector are also …

in which debt is tax preferred relative to equity but is subject to limited commitment. In the model, firms initially …Considerable research focuses on the aggregate impact of debt financing. We show that equity is empirically more … real assets, whereas an extra dollar of debt issuance is associated with an extra $0.14 of real assets. Firms issue equity …

We study the leverage of U.S. firms over their life cycles and the connection between firm leverage, firm growth, and ….S. Census Bureau’s Longitudinal Business Database for the period 2005–12. Public and private firms exhibit different leverage … dynamics over their life cycles. Firm age and size are systematically related to leverage for private firms but not for public …

We test the assumptions of trade-off theory (TOT) and pecking order theory (POT) regarding corporate leverage. The … dependent variable being the debt ratio, we apply a linear model upon a balanced panel data-set of 2,370 French SMEs over the … the firm and access to credit relies on guarantees. The relationship between corporate leverage and the profitability of …

internal cash flows is greater in larger than in the smaller VC-backed SMEs. Debt is more important for smaller than for larger … flows and debt as well as the negative effect of growth opportunities on investment in both smaller and larger VC …

Using recently collected data on Finnish small businesses, we provide evidence that the debt capacity of growth options …, defined as the amount of debt that firms optimally raise for an incremental project, is negative, especially in the …. This may explain why the recent ICT ‘revolution’ relied more on equity than on debt. We run a battery of robustness tests …