staying below the threshold are more likely to substitute public equity with debt. We further find that the leverage effect … persists over time (the leverage ratchet effect) even when EGCs lose their status …

. By looking at 5,500 issues over the period 2005-2012, we find that in recent years the sovereign debt market turbulence … premium due to the negative spillovers from the sovereign debt crisis, while German firms got a discount of 40 basis points. …

debt in place, shareholders pervasively resist leverage reductions no matter how much such reductions may enhance firm … value. Shareholders would instead choose to increase leverage even if the new debt is junior and would reduce firm value …. These asymmetric forces in leverage adjustments, which we call the leverage ratchet effect, cause equilibrium leverage …

debt's informational insensitivity may provide valuable liquidity, increased capital (and reduced leverage) can enhance …. Policies that subsidize debt and indirectly penalize equity through taxes and implicit guarantees are distortive. And while … this benefit. Finally, suggestions that high leverage serves a necessary disciplining role are based on inadequate theory …

heterogeneous effects of tax rise on leverage. Our findings support that country-specific corporate structure matters in debt …Even if the corporate tax effects the cost of debt financing, firms' responses to tax changes may differ conditional on … structure on Korean firms' debt usage. Using difference-in-difference, we find that tax cut response supports the trade …

to minimize the carbon tax policy’s cost. The shift to debt financing, in turn, mitigates the carbon tax policy … interests. Such a rule renders senior debt no longer useful for reducing the carbon tax policy’s cost. As a result, the tax …This paper examines the efficacy of carbon tax policies in view of the interactions between such policies and the firm …

model" problem, and policy answers such as leverage ratios and more reliance on backtesting mechanisms …

deeply. His results show that the longer the layers of pyramid structure, the stronger the leverage effect of pyramid … structure, as well as the ultimate controllers' motivation to expand debt financing will be. So the layers of pyramid structure …

debt and equity levels refelect regulatory responses. Moreover, debt financing weakens the incentive for regulators to …

, i.e. finding the right balance between equity financing and debt. Taggert (1981) shows that rate-of-return regulation … Spulber (1994) find that the firm chooses its equity and debt in order to affect the outcome of the regulatory process. As a … strategies solely financing with equity or debt. …