Krishnaswami, Sudha; Subramaniam, Venkat - In: The Financial Review 35 (2000) 4, pp. 9-29
We model the capital structure choice of a firm that operates under imperfect competition. Extant literature demonstrates that debt commits a firm to an aggressive output stance, which is an advantage to the firm under Cournot competition. However, empirical evidence, indicates that debt is, in...