Using mostly theoretical models and traditional risk/uncertainty measures (VIX index, panic, precaution, scary bad news …, etc.), the current literature tries to clarify the risk/uncertainty-deleveraging pattern. The findings are not sufficient … to explain the dynamic empirical relationship between modern risk/uncertainty indicators and leverage. We fill this gap …

Mutual fund risk-taking via active portfolio rebalancing varies both in the crosssection 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 …

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 …

exposure to macroeconomic risk, and that FD can increase macroeconomic vulnerability. To do this, we first establish three … an aggregate shock borne by a region is positively correlated with the level of FD present at the time of the shock …

, and collateral constraint (credit shock) on firm exit. We find that only the credit shock increases firm exit. This result … output, employment, and firm debt during the Great Recession (2007-2009) in the United States, we find that the credit shock …

Private benefits of control distort the risk choices of owner-managers. In particular, when riskier projects entail a … mitigated by issuing risky debt. In fact, risky debt and outside equity are complements for implementing a given risk choice …, and an appropriately chosen mix of debt and equity allows the owner-manager to commit to the ex ante optimal risk level …