attention on agency costs in leveraged firms. Particular attention was given to the incentives of shareholders in such firms to … the firm's financial results alleviates the classic agency costs between shareholders and debt-holders, leading to less …

I exploit the adoption of state-level labor protection laws as an exogenous increase in employee firing costs to … examine how the costs associated with discharging workers affect capital structure decisions. I find that firms reduce debt … costs. I also document that, following the adoption of these laws, a firm's degree of operating leverage rises, earnings …