Despite the known statistical problems with pooled regression specifications, we argue that current literature has identified a good list of factors that affect firms' capital structure decisions. In particular, to address the potential biases in both pooled and fixed effects specifications, we...

Current literature has suggested that many factors affect a firm's capital structure decision and firms do not change their capital structure very often. Such a quot;stablequot; structure has prompted Lemmon, Roberts, and Zender (2007) to advocate the use of firm fixed effect in capital...

In this paper we model the spillovers from the restructuring of a financially distressed firm on other firms and the feedback effects from the restructuring. Our results indicate that the spillover and feedback effects are complex and are determined by several factors including the level of...