In corporate financing, a decision on whether to employ debt or equity in capitalising a corporate entity is a common challenge to financial managers. On what is preferable between equity and debt, studies have been varying. Some studies have shown a firm with high leverage tends to have an...

The security lending market allows institutional investors, such as insurance companies, to lend out their holding assets in exchange for cash collateral, an important but understudied source of funding to conduct off-balance sheet transactions. Since these lenders are also primary investors of...