In this paper we examine the link between state ownership and the choice of public debt versus bank debt in an … ownership is significantly positively associated with the use of bank debt financing, suggesting that privatized firms benefit … robustness tests. We further find that the positive relation between state ownership and bank debt reliance is more pronounced in …

We develop a model of the joint capital structure decisions of banks and their borrowers. Strikingly high bank leverage … emerges naturally from the interplay between two sets of forces. First, seniority and diversification reduce bank asset … and fragility. Deposit insurance and the expectation of government bailouts increase not only bank risk taking, but also …

because it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy …

it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy that …