Aggressive deregulation of the household debt market in the early 1980s triggered innovations that greatly reduced the required home equity of U.S. households, allowing them to cash-out a large part of accumulated equity. In 1982, home equity equaled 71 percent of GDP; so this generated a borrowing shock of huge macroeconomic proportions. The combination of increasing household debt from 43 to ...

In many settings, including venture capital …nancing, mergers and acquisitions, and lease competition, the structure of the contracts (debt versus equity) over which …rms compete di¤ers. Furthermore, the structure of the contract a¤ects the future incentives of the …rm to engage in value-creating activities by potentially diluting e¤ort or investment incentives. We study, both theoretically and...

This paper considers whether debt-based capital inflows have different effects onmany shortrun macroeconomic indicators than equity-based capital inflows. Using external instruments in a structural VAR for identification, we estimate the response of domestic variables like the output gap, inflation, the exchange rate, stock prices, credit growth, and interest rates to an exogenous shock to debt...

The microstructure of the bond market suggests that private information could play a different role in the bond market than in the equity market. In particular, higher quality of private information can reduce the dealer power and estimation risk while having limited effect of increasing information asymmetry among mostly institutional investors. We show that while higher precision of public in...

This paper argues that occasionally binding borrowing limits and non-trivial equity trading costs signi cantly increase the probability of a Sudden Stop post nancial liberalization, which in turn, signi cantly alters the long run external capital structure of an emerging market economy. Upon opening the capital account, agents in the emerging market have an incentive to accumulate debt and sell...

I demonstrate that non-financial corporations act as cross-market arbitrageurs in their own securities. Firms use one type of security to replace another in response to shifts in relative valuations, inducing negatively-correlated financing flows in different markets. Net equity repurchases and net debt issuance both increase when the expected returns on debt are particularly low, or when the e...

Manufacturing companies are part of that contribute to the Indonesian economy. This company has become object investors in investing because it is able grow rapidly economic development and a large scope market share. study aims determine effect Current Ratio, Debt Equity Return on Assets dividend policy manufacturing food beverage sub-sector listed Indonesia Stock Exchange 2018-2019. uses 15 c...

Accounting and financial information are usually given to investors help predicting the stock returns because data has value historical. This study aims examine how ability of performance that represent leverage consisting debt asset ratio (DAR), equity (DER), profitability including return on (ROA), (ROE), net profit margin (NPM) in returns. The research applies a final sample 163 companies no...

The aim of this study is to demonstrate the effect Capital Structure (Longterm Debt Asset Ratio and Equity Ratio) on Corporate Income Tax Payable. In Wholesale Companies that are listed Indonesia Stock Exchange between 2017 2019. Purposive sampling was used obtain sample for study, which included 16 companies. Multiple linear regression hypothesis testing with t-test f-test a significance level...