Why Does Capital Structure Choice Vary With Macroeconomic Conditions?

Abstract

This paper studies macroeconomic conditions and ...nancing decisions of ...rms that face various degrees of agency problems. A calibrated model is developed that explains the pronounced counter-cyclical leverage patterns observed for ...rms that access public capital markets. It relates these patterns to debt and equity issues. Moreover, it explains why… (More)

Topics

5 Figures and Tables