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law on firms' capital structure. Design/methodology/approach – Taking advantage of the Brazilian bankruptcy law reform as …Purpose – The purpose of this paper is to study the effect of changes in creditors' priority defined by the bankruptcy … and after the new law, using fixed-effects panel regression. The empirical results are in line with theories that predict …
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balance the benefits of the provision of liquidity services by bank deposits with the costs of bankruptcy. The risk in the …
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The frequency with which firms adjust output prices helps explain persistent differences in capital structure across firms. Unconditionally, the most exible-price firms have a 19% higher long-term leverage ratio than the most sticky-price firms, controlling for known determinants of capital...
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