Showing 81 - 90 of 25,863
This study examines the effects of global supply chain pressures on firm leverage ratios. I find that firms have historically responded to global supply pressures by reducing their total debt ratios. However, during the extreme pressures of the COVID-19 pandemic, firms sharply increased...
Persistent link: https://www.econbiz.de/10013491906
This paper examines how executives' compensation structure interacts with firm debt structure. Agency theory suggests that executive compensation can be used to mitigate the conflicts of interests between executives and shareholders. Based on the compensation contracts, executives make...
Persistent link: https://www.econbiz.de/10013135601
The article contributes to the literature on financial fragility, studying how macro-economic shocks affect supply and demand in the corporate debt market. We take into account the effect of the competitive environment, as well as the risk level, measured by companies' default rate. The model is...
Persistent link: https://www.econbiz.de/10013137974
The paper integrates the problem of designing corporate bankruptcy rules into a theory of optimal debt structure. We show that, in an optimal contracting framework with imperfect renegotiation, having multiple creditors increases a firm's debt capacity while increasing its incentives to default...
Persistent link: https://www.econbiz.de/10013142049
Using a quarterly dataset of 185 listed firms in six Latin American countries between 1993 and 2009 we find that leverage is positively related to tangibility, firm size and the market to book ratio, and negatively related to profitability. The average cost of debt is negatively related with...
Persistent link: https://www.econbiz.de/10013146331
Capital structure decisions have become complex in the changing business paradigm. The evaluation techniques used for capital structure decisions by the theories and models developed in the 1950s have lost their relevance due to changes over the years. Capital is still scarce despite financial...
Persistent link: https://www.econbiz.de/10013146644
We study how the relative availability of bond and bank financing supply affects the firm's ability to borrow and to use its leverage to buffer shocks. We define a measure that proxies for the regional borrowing inflexibility in the availability of bank and bond financing: “debt...
Persistent link: https://www.econbiz.de/10013147073
Markets passively accept a convex cone of cash flows that contains the the nonnegative cash flows. Different markets are defined by different cones and conditions are established to exclude the possibility of arbitrage between markets. Operationally these cones are defined by positive...
Persistent link: https://www.econbiz.de/10013148221
This paper presents a dynamic model of the firm with risk-free debt contracts, investment irreversibility, and debt restructuring costs. The model fits several stylized facts of corporate finance and asset pricing: First, book leverage is constant across different book-to-market portfolios,...
Persistent link: https://www.econbiz.de/10013153327
This study evaluates the impact of financial reforms on the corporate financing decisions of 23 Indian industries for the period 1989-2005. We argue that the impact will be industry-specific because the regulatory and financial framework in which industries operate differs across industries....
Persistent link: https://www.econbiz.de/10013083046