This study investigates the effects of' institutional ownership on the debt policy and managerial ownership of the firm. Earlier literature on the agency model of the firm widely recognizes that the use of managerial stock ownership and external debt play an important role in limiting agency...

Can monetary policy influence long-term interest rates? Studies that have tackled this question using VARs generally find that monetary policy's influence on long-term interest rates is small and often statistically insignificant. Other studies, however, using a single-equation approach have...

The purpose of this paper is to examine the theoretical arguments presented in the literature related to the issue concerning whether domestic firm value may be enhanced via the use of foreign currency debt. Additionally, it adds to the existing literature in three ways. First, it provides an...

We show that the ordinary least-squares method used by Pirinsky and Wang (2006) suffers from an endogeneity problem leading to biased and inconsistent estimates. A maximum likelihood estimation procedure that will produce consistent estimates for their model is set forth. This is done using an...