optimal dynamic control problem is characterized by two stochastic state variables: the equity value, and profitability (ROA …) of the _rm. According to the empirical evidence, we let profitability follow a mean reverting process. The problem is …

Current study aims to provide new empirical evidence on the impact of debt on corporate profitability. This impact can … (GMM) econometric technique on three measures of profitability ratio (PROF1, PROF2 and ROA), we show that debt ratio has no … effect on corporate profitability, regardless of the size of company (VSEs, SMEs or LEs). -- Debt ; GMM ; Panel data …

We take a closer look at the links between corporate capital structure and productivity, profitability and access to … capital structure has no significant impact on the firms' profitability or productivity. However, the capital structure is … they apply for bank loans than corresponding firms with low solvency ratios. We also find that firms issuing exchange …

correlation between leverage and profitability. When rebalancing costs are added to this theory, it predicts a positive leverage-profitability … the theory predicts it should be positive. Our results thus resurrect the leverage-profitability puzzle …

' capital structure, investment and profitability. The identification of the causal effects is based on the escape clauses in … stripping rule ; debt ratio ; profitability ; investment …

We develop a dynamic structural model of bank behaviour that provides a microeconomic foundation for bank capital and …

it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy that …