We investigate the impact of government debt on corporate financing decisions. We document a negative relation between government debt and corporate leverage using data on 40 countries between 1990 and 2014. This negative relation holds only for government debt that is financed domestically and...

We empirically investigate the impact of government debt on corporate financing decisions in an international setting. We document a negative relation between government debt and corporate leverage using data on 40 countries between 1990-2014. This negative relation is stronger for government...

We build an enhanced structural credit risk Merton style model for a risky sovereign having both domestic and foreign debt outstanding. If earlier research was mainly focused on the fundamental values of the respective local and foreign currency bonds, here we move forward by elaborating on...

We investigate the impact of government debt on corporate financing decisions. We document a negative relation between government debt and corporate leverage using data on 40 countries between 1990 and 2014. This negative relation holds only for government debt that is financed domestically and...

Motivated by existing research on the informational and monitoring role of social trust, we examine how social trust affects firms’ choice between bank debt and public debt. Using firm-level data from 32 countries, we document that higher social trust is associated positively (negatively) with...