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This study examines the impact of debt financing on the productivity of capital invested and the mediating role of corporate investment using data from manufacturing firms in China, Japan and the United States. We find that firms that use more debt capital are less likely to make overinvestment....
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This Article develops a unique theory of performance-sensitive debt and argues that certain revenue-stage startups may … challenge, several distinct bodies of research, including incomplete contracting theory and the literature on capital structure …
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Purpose: This study verifies the debt covenant hypothesis by exploring the earnings management of zero-leverage firms that are not constrained by debt covenants. Furthermore, this study investigates whether the earnings management of zero-leverage firms varies depending on financial constraints,...
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