We examine how executive equity risk-taking incentives affect firms' choice of debt structure. Using a longitudinal …. We conclude that, by encouraging risk-taking, higher vega reduces firms' reliance on bank debt financing in order to …

We propose a theory of optimal firm financing given nested information problems of adverse selection and agency cost …

Mutual fund risk-taking via active portfolio rebalancing varies both in the cross-section and over time. In this paper …, I show that the same is true for funds' off- balance sheet risk-taking, even after controlling for on-balance sheet … information. In the empirical application, I show that German equity funds have increased their risk-taking via synthetic leverage …

this model, we find that the application of covenants based on these variables is not necessarily monotonic in firm risk …

find that the application of covenants based on these variables is not necessarily monotonic in firm risk. While the …