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Assuming that firms operate in a perfect and frictionless capital market, Modigliani and Miller (1958) argue that the value of a firm is independent of its capital structure. But other researchers argue that financial leverage depends on firm, industry and country-specific factors. As an economy...
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private sector's gross domestic product has a negative relation with the supply of money, positive relation with bank credit …
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credit crunch. Evidence of an increased sovereign-bank nexus highlights risks to macro-financial stability, especially as …
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