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Hackbarth, Dirk - 2018

This paper studies incentives in a dynamic contracting framework of a levered firm. In particular, the manager selects long-term and short-term efforts, while shareholders choose initially optimal leverage and ex-post optimal default policies. Notably, a resource constraint that binds the...

Persistent link: https://www.econbiz.de/10012932339

Capital Structure and Financial Flexibility : Expectations of Future Shocks

Lambrinoudakis, Costas - 2019

We test one of the main predictions of the financial flexibility paradigm, that expectations about future firm-specific investment shocks affect the firm's leverage. We extract the expectations of small and large future shocks from the market prices of equity options. We find that leverage...

Persistent link: https://www.econbiz.de/10012904711

Capital Structure and the Substitutability versus Complementarity Nature of Leases and Debt

Ambrose, Brent William - 2018

The capital structure irrelevance argument of Modigliani and Miller (1958) implies that the use of debt or leases should have no impact on firm values. This classical argument leaves out several important considerations crucial for the result, in particular, counterparty credit risk. We...

Persistent link: https://www.econbiz.de/10012926496

Modelling Default Correlations in a Two-Firm Model with Dynamic Leverage Ratios

Chiarella, Carl - 2012

This article provides a generalized two-firm model of default correlation, based on the structural approach that incorporates interest rate risk. In most structural models default is driven by the firms' asset dynamics. In this article, a two-firm model of default is instead driven by the...

Persistent link: https://www.econbiz.de/10013099258

Liquidation, Leverage and Optimal Margin in Bitcoin Futures Markets

Cheng, Zhiyong; Deng, Jun; Wang, Tianyi; Yu, Mei - 2021

Using the generalized extreme value theory to characterize tail distributions, we address liqui- dation, leverage, and …

Persistent link: https://www.econbiz.de/10013241565

Macroeconomic Conditions and the Puzzles of Credit Spreads and Capital Structure

Chen, Hui - 2009

I build a dynamic capital structure model that demonstrates how business-cycle variations in expected growth rates, economic uncertainty, and risk premia influence firms' financing and default policies. Countercyclical fluctuations in risk prices, default probabilities, and default losses arise...

Persistent link: https://www.econbiz.de/10013155971

Capital structure decision : an imlicit contract or a governance relation?

Ramamohan Rao, T. V. S. - In: Rivista internazionale di scienze economiche e … 42 (1995) 3, pp. 145-162

Persistent link: https://www.econbiz.de/10001185188

The determinants of capital structure of the chemical industry in Pakistan

Rafiq, Muhammad; Iqbal, Asif; Atiq, Muhammad - In: The Lahore journal of economics 13 (2008) 1, pp. 139-158

Persistent link: https://www.econbiz.de/10003751656

The Determinants of Capital Structure of the Chemical Industry in Pakistan

Rafiq, Muhammad - 2011

This study is an attempt to determine the capital structure of listed firms in the chemical industry of Pakistan. The …

Persistent link: https://www.econbiz.de/10014178868

Impact of Financial Structure on Firm’s Performance : A Study of Pakistan’s Chemical Sector

Amjed, Sohail - 2011

impact of debt financing on the profitability of the firms in Chemical Sector of Pakistan. The rationale behind the industry … developing countries like Pakistan. Financial Environment has great impact on financing decisions, the role of financial … institutions is critical for capital restructuring decisions. In developing countries like Pakistan Financial Markets are …

Persistent link: https://www.econbiz.de/10014043223