This paper investigates the relationship between the borrowing firm's cross-ownership and its choice between bank loans and public bonds when raising new debt capital. We find that cross-ownership significantly reduces the firm's use of bank loans when making debt issuance decisions. Evidence...

We analyze the effects of managerial job security on firm diversification. Our findings indicate that enacting legal protection for managers’ employment leads to less corporate diversification. Our findings suggest that, in relation to managerial entrenchment and empire-building theories,...