We investigate the disciplining role of debt in the publicly held firm by examining the relation between employee productivity and financial leverage. The unique feature of our study is that we incorporate outside employment opportunities for employees into the analysis. Consistent with the notion that the debt serves as a bonding mechanism because agents exert additional effort to avoid the pe...

Tightening financial regulation squeezes banking activities into the shadow banking sector, which may hurt financial stability and production (Plantin, 2014). Unlike Plantin’s work, we investigate regulations that reduce banks’ leverage and dampen financial amplification effects. Moreover, our paper studies the trade-off between economic growth and financial stability in light of shadow banking...

The size and the leverage of financial market investors elasticity demand unlevered define MinMaSS, smallest that can support a given degree leverage. system’s potential for crises be measured by stability ratio , total to MinMaSS. We use metric gauge buildup vulnerability in run-up 1998 Long-Term Capital Management crisis argue policymakers could have detected crisis.

We estimate the impact of effective profit taxation on the financial leverage of corporations on the basis of a pseudo-panel constructed from corporate tax return micro data for the period 1998-2001, a period which saw the introduction of a major corporate tax reform in Germany. The financial leverage is measured by the ratio of long-term debt to total capital. Endogeneity of the effective corp...

This study aims to investigate the impact of operating leverage and financial on earning per share (EPS) in property real estate sector companies listed Indonesian Stock Exchange from 2017 2019. The results show that has a positive significant effect EPS, while no EPS. Simultaneously, both have suggests investors should pay attention EPS company before making any investment decisions, as well c...