Since its publication, the seminal structural model of default by has become the workhorse
for gaining insights about how firms choose their capital structure, a “bread and butter” topic …

This paper studies the impact of both liquidity and solvency concerns on corporate finance. I
present a tractable model of a firm that optimally chooses capital structure, cash holdings …

We develop a dynamic contingent-claim framework to model S. Myers's idea that a firm is a
collection of growth options and assets in place. The firm's composition between assets in …

By mixing concepts from both game theoretic analysis and real options theory, an
investment decision in a competitive market can be seen as a “game” between firms, as …

We model a firm's optimal capital structure decision in a framework in which it may later
choose to enter either Chapter 11 reorganization or Chapter 7 liquidation. Creditors …

We build a model of investment and financing decisions to study the choice between bonds
and bank loans in a firm's marginal financing decision and its effects on corporate …

This study examines the role of earnings management in the relationship between firm
performance and capital structure, dividing earnings management into discretionary and …

This paper shows that shareholders' option to renegotiate debt in a period of financial
distress exacerbates Myers'(1977) underinvestment problem at the time of the firm's …

We investigate corporate financial policies in the presence of both temporary and permanent
shocks to firms' cash flows. In our framework, cash flows can be negative and are imperfectly …

Significant progress has been made toward understanding a levered firm's optimal
investment policy under uncertainty. To date, however, not much work has concentrated on …