a second serious recession in 2011 because of the sovereign debt crisis. The reaction of Italian governments was mild at … the beginning and more convinced since the start of the sovereign debt crisis in 2011. Adopted policies contributed to … Italian economy to reduce the level of public debt and to return to sustained economic growth, which has been very weak for …

investments with debt. We find that flexibility in replenishing or liquidating inventory, by providing risk shifting incentives … effectiveness of practical and widely used covenants in restoring firm value by limiting such risk shifting behavior. We find that … full benefits of additional operating flexibility, irrespective of their leverage, by entering simple debt contracts of the …