On the Relation Between the Market-to-Book Ratio, Growth Opportunity, and Leverage Ratio

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Optimal Priority Structure, Capital Structure, and Investment (2012, unknown): “20 Consistent with this prediction, Chen and Zhao (2006) find an inverse relation between credit spreads and growth opportunities.”
Human Capital, Capital Structure, and Employee Pay: An Empirical Analysis (2013, background): “However, even though the marginal tax rate could be an imperfect instrument, it allows us to address the endogeneity of leverage to a significant degree, in the absence of a natural experiment that could have allowed us to account for the potential endogeneity of leverage unambiguously.”
In Search of Robust Methods for Dynamic Panel Data Models in Empirical Corporate Finance (2015, unknown): “25 The negative relation between growth opportunities and leverage is a well-known empirical regularity, although Chen and Zhao (2006) show that it may be driven by a small number of firms with large market-to-book ratios.”