We study the impact of the optimal debt and priority structure on corporate financing and investment decisions in a dynamic trade-off model, where a firm simultaneously issues bank and market debt. Private bank debt is renegotiable during financial distress; thus it avoids inefficient and costly...

We develop a continuous-time model over business cycles to analyze the effects of credit default swap (CDS) trading on CDS firms’ financial decisions. We show that debtholders’ CDS hedging demand is procyclical. CDS trading postpones debt renegotiation and risktaking investment. CDS firms...

We develop a continuous-time model over business cycles to analyze the effects of credit default swap (CDS) trading on CDS firms’ financial decisions. We show that debtholders’ CDS hedging demand is procyclical. CDS trading postpones debt renegotiation and risktaking investment. CDS firms...

Purpose – This study seeks to:(1) introduce a systematic taxonomy of relational benefits that drive consumers to select a service provider and then to maintain the relationship with them in sharing-economy businesses; (2) assess the relative strengths of these relational benefits in...

We develop a continuous-time structural model to characterize the manager-shareholder conflict over the choice of dynamic investment when the manager is compensated with cash salary, stock and option. We then focus on investigating the dissimilar impact of stock and option compensations on the...

This study evaluated the organizational resilience of Chinese listed companies under extreme heat events based on the cumulative abnormal return of stocks during severe environmental disturbances. Based on institutional, stakeholder, and risk management theories, the extreme heat event in August...