How do different types of debt influence firm credit risk? This paper sheds new light on this issue by decomposing the … leverage ratio into market debt, bank debt, and trade credit leverage ratios by balance sheet account type classification; and … short-term debt and long-term debt leverage ratios by debt maturity classification. The pecking order theory (Myers & Majluf …

debt have significantly lower credit quality and higher information asymmetry than firms that issue traditional non … debt source for firms with good credit quality. I also show that the firm characteristics of traditional private debt … which is conditional on credit quality. High credit quality firms prefer public bond offerings and small firms, with good …

bargaining power in default, operating in more competitive product markets, and facing lower credit supply are more likely to … investment. We test these predictions using a sample of U.S. firms and present new evidence that supports our theory …

, the model reflects empirical credit spread patterns, rationalizes the observed joint distribution of corporate events and …

friction we identify could amplify the credit cycle …