performance levels. The capital structure of Austrian SMEs are biased towards debt-financing and stronger equity, growth and …

attitudes towards financing (Berkshire eschews debt that private equity uses maximally); management (Berkshire believes in …

result of debt overhang, shareholders have incentives to resist reductions in leverage that make the remaining debt safer … combined value of the firm to shareholders and creditors. Moreover, debt overhang creates an "addiction" to leverage through a …We analyze shareholders' incentives to change the leverage of a firm that has already borrowed substantially. As a …

capital to a market based leverage ratio of 3%, EUR 84 billion of extra capital would be needed for the largest 60 banks. At … the bank level, the top tertile of well-capitalised banks (with a market based leverage ratio well above 4%) continues …

We develop a model of the joint capital structure decisions of banks and their borrowers. Strikingly high bank leverage … take on high leverage safely; supply chain effects compel them to do so. Firms with low leverage also arise naturally, as … framework underlie our model, we can quantify the impact capital regulation and other government interventions have on leverage …

debt in place, shareholders pervasively resist leverage reductions no matter how much such reductions may enhance firm … value. Shareholders would instead choose to increase leverage even if the new debt is junior and would reduce firm value …. These asymmetric forces in leverage adjustments, which we call the leverage ratchet effect, cause equilibrium leverage …

debt's informational insensitivity may provide valuable liquidity, increased capital (and reduced leverage) can enhance …. Policies that subsidize debt and indirectly penalize equity through taxes and implicit guarantees are distortive. And while … this benefit. Finally, suggestions that high leverage serves a necessary disciplining role are based on inadequate theory …

part because of difficulties in constructing an effective proxy for the firm's tax benefit of debt. We examine leverage … decisions across taxable and nontaxable real estate firms — firms for which we can measure the relative tax benefit of debt with … little error. The tax hypothesis implies that for firms with similar asset portfolios, taxable firms should have more debt …