In this paper we contribute to a line of literature that examines behavioral biases that impact important corporate decisions. Our paper builds on prior articles that examine heaping or rounding of EPS forecasts. Herrmann and Thomas (2005), Bamber, Hui and Yeung (2010) and Dechow and You (2012)...

Growing evidence suggests that managers select financial policies partially by mimicking the financial policies of peer firms. This paper documents that the use of these peer effects in capital structure choice is unique to firms operating in a weak external corporate governance environment....

We document that product market threats increase the use of leased capital. We use Chinese import penetration in an instrumental variables setting to address endogeneity concerns. The positive relation between product market threats and leases is larger for firms that are financially...