Bhamra, Harjoat S.; Kuehn, Lars-Alexander; Strebulaev, … - 2008
We study the impact of time-varying macroeconomic conditions on optimal dynamic capital structure and the aggregate … conditions on asset valuation and optimal corporate policies as well as study the impact of preferences on capital structure. We … find that capital structure is pro-cyclical at refinancing dates when firms relever, but counter-cyclical in aggregate …