, we empirically analyse whether several firm-specific characteristics-namely, the level of leverage, the cost of debt, and … constrained firms-that is, firms with higher levels of leverage, especially in the short-term, facing a higher cost of debt …

Financial leverage increases the expected return on equity. We show that this leverage effect is not only irrelevant … only look at the return on equity but at the return on shareholders' total wealth. Any relevance leverage may have is …