Can the Trade-off Theory Explain Debt Structure?

By Dirk Hackbarth, C. Hennessy, Hayne E. Leland. 2007

305 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/1f7696d31d8b55694cc366c7b80c0f591fac0061

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Citations in the corpus

A theory of corporate financial decisions with liquidity and solvency concerns (2011, unknown): “As in numerous contingent claims models of capital structure, a closed-form solution is available under the simplifying assumption that debt is issued only once at the initial date (Leland, 1994; Leland and Toft, 1996; Fan and Sundaresan, 2000; Duffi e and Lando, 2001; Miao, 2005; Hackbarth et al., ”
Dynamic Investment, Capital Structure, and Debt Overhang (2015, unknown): “For example, Hackbarth, Hennessy, and Leland (2005) study the optimal mixture and priority structure of bank and market debt using the tradeoff theory.”
A Simple Robust Link between American Puts and Credit Protection (2011, unknown): “Theoretical work on strategic default includes Leland (1994), Leland and Toft (1996), Anderson and Sundaresan (1996), Mella-Barral nd Perraudin (1997), Fan and Sundaresan (2000), Goldstein, Ju, and Leland (2001), Broadie, Chernov, and Sundaresan (2007), and Hackbarth, Hennessy, and Leland (2007).”
Renegotiation of Financial Contracts: Evidence from Private Credit Agreements (2009, background): “For theories of financial structure, see studies by Dewatripont and Tirole (1994), Berglof and von Thadden (1994), Berlin and Mester (1992), Rajan (1992), Bolton and Scharfstein (1996), and Hackbarth, Hennessy, and Leland (2007). unanswered: How often are financial contracts renegotiated?”
Entrepreneurial Finance and Nondiversifiable Risk (2009, unknown): “Our model also contributes to the incomplete-markets consumption smoothing/precautionary saving literature by extending the CARA-utility-based precautionary saving problem (see Merton (1971), Caballero (1991), Kimball and Mankiw (1989), and Wang (2003, 2006)) to allow the entrepreneur to reduce his ”
Strategic default and equity risk across countries (2012, background): “…things, the determinants of corporate bond spreads [Anderson and Sundaresan (1996)], the rm s optimal payout policies and reorganization boundaries [Fan and Sundaresan (2000)], or the optimal mix of short and long-term debt [Berglöf and von Thadden (1994); Hackbarth, Hennessy, and Leland (2007)].”
The Levered Equity Risk Premium and Credit Spreads: A Unified Framework (2010, unknown): “…introduce benchmark corporate securities, equity and debt, we follow standard EBIT-based capital structure models (see e.g. Goldstein et al. (2001), Hackbarth, Hennessy, and Leland (2007), and Strebulaev (2007)) where the earnings of a firm, X, are split between a coupon, c, promised to…”