hinges on risk tolerance and patience. Parents expecting their children to become entrepreneurs have an incentive to instill … entrepreneurs there are in a society hinges, in turn, on parental investments in children's patience and risk tolerance. There can …

We build a dynamic capital structure model to study the link between systematic risk exposure and debt maturity, as … raises the costs of financing. The risk premium embedded in the bankruptcy costs causes firms with high systematic risk to …, endogenous maturity choice can also reduce and even reverse the effect of rollover risk on credit spreads. We provide empirical …

weak competition. In line with the theory, prices of products, that face very strong competition, are also less likely to …

have taken place. We test this unexplored implication of the theory empirically. We find in a world sample from 1970 to …