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Keywords:Corporations - Finance 

Journal Article
The buck stops where? The role of limited liability in economics

Over the last few centuries laws have increasingly protected individuals and corporations from liability resulting from bad economic outcomes. This evolution in liability provisions, by many accounts, has significantly influenced both the level and distribution of contemporary economic output as well as the allocation of financial resources in today's financial markets. ; Through a review of an extensive and growing literature, the authors of this article consider how limited liability affects investment, labor, and financing decisions made by individuals and corporations as well as ...
Economic Review , Volume 82 , Issue Q 1 , Pages 46-56

Journal Article
Event risk premia and bond market incentives for corporate leverage

Quarterly Review , Volume 15 , Issue Spr , Pages 15-30

Working Paper
Debt, collateral, and U.S. manufacturing investment: 1954-1980

I perform an empirical analysis of Euler equations for the firm's choices of capital, labor, hours, and debt. Financial structure has real effects , since taxes favor debt. However, the cost of debt increases with the debt-to-collateral ratio, and capital is part of collateral. The data, for U.S. manufacturing investment from 1954 to 1980, show that the debt-to-collateral ratio moves opposite to the direction suggested by tax rates. However, excluding the Euler equation for debt implies the correct sign for the relation between investment and the debt-to-collateral ratio. I also find ...
Working Papers (Old Series) , Paper 9210

Monograph
Studies on corporate leverage

Monograph

Conference Paper
Are the distinctions between debt and equity disappearing? An overview

Conference Series ; [Proceedings] , Volume 33 , Pages 1-11

Working Paper
Determinants of long-term bond risk premiums

Investor risk aversion in the long-term bond markets strongly influences the ability of many businesses to finance capital expenditures.
Working Paper , Paper 76-03

Working Paper
Tobin's Q, investment, and endogenous adjustment of financial structure

An analysis of a q model of investment in which financial structure affects firm value, using a perfect foresight model of general equilibrium that includes a debt-related agency cost; uses the comparative statics and dynamics of changing the corporate tax rate as an illustration.
Working Papers (Old Series) , Paper 8801

Journal Article
Will higher corporate debt worsen future recessions?

Economic Review , Volume 75 , Issue Mar , Pages 19-34

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