in a firm's leverage decision during economic uncertainty and recommends increasing debt financing to incentivize value … corporate leverage relationship. Using stepwise regression analysis and annual firm-level data of 2,534 U.S. firms listed at … NYSE over 1995-2018, we provide novel evidence that cash holdings significantly and partially mediate the EPU-leverage …

2017 US tax reform creates an opportunity to directly estimate this relation. The reform limits the tax advantage of debt … regression discontinuity design and show that corporate debt declines nearly dollar for dollar as the present value of the tax … with more profits and smaller non-debt tax shields. Comparing the size of the debt tax shield across the firm size …

their debt issuance and investments compared to similar unrated firms. Our results are not driven by credit supply or the …

financial instruments used. Some are consistent with existing theory, while others are understudied. Many leverage changes are …). This implies a lower frequency of proactive leverage adjustments than indicated by prior research using accounting data …

This paper documents that standard cross-sectional determinants of firm leverage also apply to the capital structure of …