This paper investigates whether the health of a bank affects the client firm's capital structure and then leads to inefficiency in the client firm's decision-making. Using the Japanese IPO dataset from 1996 to 2005 when bank sectors suffered liquidity shortages and IPO booms occurred at the same...

This paper investigates the impact of inter-firm relationships on a firm's incentive to adjust its capital structure. We predict that firms with tight business relationships with other firms have less incentive to adjust their capital structure because their information will be propagated...

This study examines whether geopolitical risk affects capital structure. We used financial data from Serbian companies. The findings show that the average debt ratio of firms near the ABL is lower than that in other areas in Serbia. An additional analysis shows that the low debt ratio comes from...