volatility. We show in a simple two-period model that the riskiness of corporate investment is a decreasing function of corporate … correlated, corporate debt maturity should be highly correlated with “ex post” realized firm performance volatility in following … future firm operating performance volatility decreases as corporate debt maturity increases and that future firm value …

The empirical literature on the relationship between capital structure and firm cash flow volatility is inconclusive …. We explore this relationship using several measures of a firm's cash flow volatility and econometric methods that account … standard deviation increase from the mean of cash flow volatility implies an approximate 24% decrease in the long-term debt …