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dc.contributor.authorChen, Hui
dc.contributor.authorManso, Gustavo
dc.date.accessioned2019-03-07T19:25:39Z
dc.date.available2019-03-07T19:25:39Z
dc.date.issued2016-12
dc.date.submitted2016-05
dc.identifier.issn2046-9128
dc.identifier.issn2046-9136
dc.identifier.urihttp://hdl.handle.net/1721.1/120820
dc.description.abstractSince corporate debt tends to be riskier in recessions, transfers from equity holders to debt holders that accompany corporate decisions also tend to concentrate in recessions. Such systematic risk exposures of debt overhang have important implications for corporate investment and financing decisions, and for the ex ante costs of debt overhang. Using a calibrated dynamic capital structure model, we show that the costs of debt overhang become higher in the presence of macroeconomic risk. We also provide several new predictions on how the cyclicality of a firm's assets in place and growth options affect its investment and capital structure decisions.en_US
dc.publisherOxford University Press (OUP)en_US
dc.relation.isversionofhttp://dx.doi.org/10.1093/RCFS/CFW007en_US
dc.rightsCreative Commons Attribution-Noncommercial-Share Alikeen_US
dc.rights.urihttp://creativecommons.org/licenses/by-nc-sa/4.0/en_US
dc.sourceOther repositoryen_US
dc.titleMacroeconomic Risk and Debt Overhang*en_US
dc.typeArticleen_US
dc.identifier.citationChen, Hui, and Gustavo Manso. “Macroeconomic Risk and Debt Overhang*.” The Review of Corporate Finance Studies 6, 1 (December 2016): 1–38 © 2016 The Authoren_US
dc.contributor.departmentSloan School of Managementen_US
dc.contributor.mitauthorChen, Hui
dc.relation.journalReview of Corporate Finance Studiesen_US
dc.eprint.versionAuthor's final manuscripten_US
dc.type.urihttp://purl.org/eprint/type/JournalArticleen_US
eprint.statushttp://purl.org/eprint/status/PeerRevieweden_US
dc.date.updated2019-02-05T18:26:33Z
dspace.orderedauthorsChen, Hui; Manso, Gustavoen_US
dspace.embargo.termsNen_US
dc.identifier.orcidhttps://orcid.org/0000-0001-9605-641X
mit.licenseOPEN_ACCESS_POLICYen_US


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