Much of empirical corporate finance focuses on sources of the demand for various forms of
capital, not the supply. Recently, this has changed. Supply effects of equity and credit …

Corporate borrowing has substantially changed over the last two decades. In this article, we
investigate changes in borrowing of US publicly listed firms along trends in five key areas:(a) …

We find that firms mitigate refinancing risk by increasing their cash holdings and saving cash
from cash flows. The maturity of firms' long‐term debt has shortened markedly, and this …

In a leveraged buyout, a company is acquired by a specialized investment firm using a
relatively small portion of equity and a relatively large portion of outside debt financing. The …

We propose that the decision to pay dividends is driven by prevailing investor demand for
dividend payers. Managers cater to investors by paying dividends when investors put a …

We build a model that helps to explain why increases in liquidity—such as lower bid–ask
spreads, a lower price impact of trade, or higher turnover–predict lower subsequent returns …

Prior work on leverage implicitly assumes capital availability depends solely on firm
characteristics. However, market frictions that make capital structure relevant may also be …

We survey the theory and evidence of behavioral corporate finance, which generally takes
one of two approaches. The market timing and catering approach views managerial …

This paper examines time-series patterns of external financing decisions and shows that
publicly traded US firms fund a much larger proportion of their financing deficit with external …

Private equity funds pay particular attention to capital structure when executing leveraged
buyouts, creating an interesting setting for examining capital structure theories. Using a …