Theoretically, it is often argued that the international diversification of earnings should enable multinational corporations to sustain higher levels of debt than domestic corporations. Studies using US multinationals often report lower leverage for multinationals relative to domestic...

The agency relationship between managers and shareholders has the potential to influence decision-making in the firm which in turn potentially impacts on firm characteristics such as value and leverage. Prior evidence has demonstrated an association between ownership structure and firm value....

This paper represents one of the first studies to document the empirical relation between capital structure and management confidence. In a unique sample of US firms that have existed for over 25 years we find management confidence, as proxied by University of Michigan Consumer Sentiment Index,...