Gryglewicz (2011) develops a model that evaluates the effect of the two sources of financial distress, illiquidity and insolvency, on firm financial decisions. Using a comprehensive database of corporate bonds from 1985 to 2009, we analyze the impact of these two sources of financial distress on...

Gryglewicz (2011) develops a model that evaluates the effect of the two sources of financial distress, illiquidity and insolvency, on firm financial decisions. Using a comprehensive database of corporate bonds from 1985 to 2009, we analyze the impact of these two sources of financial distress on...

Studies show that capital structure choice varies over time and across firms and that macroeconomic conditions are important factors in analyzing firms' financing choices. However, studies have largely ignored the impact of macroeconomic conditions on the adjustment speed of capital structure...

"Although there is conflicting evidence and resulting skepticism regarding the value provided by professional investment management, Gibson, Safieddine, and Sonti (2004) document institutional investor informativeness relative to seasoned equity offering (SEO) purchases. We find that Regulation...

Studies have analyzed the impact of firm and issue characteristics but not liquidity and solvency components of financial distress on the use of bond covenants. Using a comprehensive database of corporate bonds from 2001 to 2012, we find that firm liquidity, measured by standardized Lambda, has...