Dirk Hackbarth

TL;DR: In this article, the authors develop a framework for analyzing the impact of macroeconomic conditions on credit risk and dynamic capital structure choice and demonstrate that when cash flows depend on current economic conditions, there will be a benefit for firms to adapt their default and financing policies to the position of the economy in the business cycle phase.

TL;DR: In this article, the authors develop a framework for analyzing the impact of macroeconomic conditions on credit risk and dynamic capital structure choice and demonstrate that when cash flows depend on current economic conditions, there will be a benefit for firms to adapt their default and financing policies to the position of the economy in the business cycle phase.

TL;DR: In this article, the authors incorporate well-documented managerial traits into a tradeoff model of capital structure to study their impact on corporate financial policy and firm value, finding that managers' investment decisions can increase firm value by reducing this bondholder-shareholder conflict.

TL;DR: In this paper, the optimal mixture and priority structure of bank and market debt using a tradeoff model where banks have the unique ability to renegotiate outside formal bankruptcy was examined, and the tradeoff theory offers an explanation for why young/small firms use bank debt exclusively; why large/mature firms employ mixed debt financing; and why bank debt is senior.

TL;DR: In this article, the optimal mixture and priority structure of bank and market debt using a tradeoff model where banks have the unique ability to renegotiate outside formal bankruptcy was examined, and the tradeoff theory offers an explanation for why young/small firms use bank debt exclusively; why large/mature firms employ mixed debt financing; and why bank debt is senior.