treating tax benefits differently, FCF and CCF models are algebraically equivalent, the latter being a way to value future cash …

unconstrained firms, results accord with the strategic debt model: leverage increases more in response to rises in corporate …Corporate leverage responds differently to employees' rights in bankruptcy depending on whether it is driven by … their impact on leverage, exploiting time-series, cross-country and firm-level variation in the data. For financially …

creditors to grant concessions outside formal bankruptcy. We study the joint impact of the two indexes on a firm's leverage … policy. We show that the two indexes have at most a statistically weak effect on the level of long-term debt. Instead, the … two indexes affect the distribution of long-term debt into bank debt, public debt and private placements. Bank debt …

We use a new international setting to test and strengthen the identification of “target leverage hypothesis” in the … economies and analyze its influences on leverage dynamics. Under-leveraged firms before legalization are more likely to buy back … facilitate firms’ movement towards target leverage, especially for under-leveraged firms. This facilitating effect is stronger …

rights and profitability on market leverage. It suggests that the more shareholder rights there are, the fewer asymmetric …

employee rights and firms' use of debt. This is because when employee rights are high, shareholders intend to use more debt … also document a negative relationship between creditor rights and firm debt ratio. When creditor rights are high, creditors … have more negotiation power to obtain good terms in debt contracting. If shareholders cannot get a favorable debt contract …

the relationship between state ownership and corporate leverage. Controlling for country-sector-year fixed effects and … conventional firm-level determinants of leverage, we show that state ownership is robustly and negatively related to corporate … leverage. This relationship holds across most of the firm-size distribution – with the important exception of the largest …

the relationship between state ownership and corporate leverage. Controlling for country-sector-year fixed effects and … conventional firm-level determinants of leverage, we show that state ownership is robustly and negatively related to corporate … leverage. This relationship holds across most of the firm-size distribution, with the important exception of the largest …

, across 93 countries, we document that private firms tend to decrease leverage in response to tax rate cuts and increase … leverage in response to corporate tax rate hikes … globally, we show that affected private firms reduce leverage relative to unaffected firms. In support of a causal effect of …