Thomas, Catherine; Wang, Yongxiang - In: Economics Letters 110 (2011) 2, pp. 107-109
When partially inalienable managerial entrenchment is introduced to Zwiebel's 1996 model of dynamic capital structure, anticipated debt renegotiation between a higher-type manager and the creditor reduces expected firm value. Only lower-type managers can issue debt to avoid shareholder takeover.