Roberts, Michael R. (contributor); Sufi, Amir (contributor) - 2007 - Current Draft: April 4, 2007
terms of their importance in the decision to use debt financing.
2
stand in stark contrast to what managers prefer. More …
managerial and creditor preferences for debt financing, and we find that creditor-dictated
leverage ratios are significantly … bankruptcy as an ex ante agency cost of debt
financing, which forces managers to keep leverage ratios lower than they would in …