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Regarding the coordination of financing and investment policy and agency conflicts of debt hypothesis (H4), the results show ambiguous empirical evidence.
For the asymmetric information and agency conflicts of equity hypothesis (H3) the picture is the same as for the coordination of financing and investment policy and agency conflicts of debt hypothesis (H4).
Overall, this study provides additional and valuable biological plausibility to the oxygen debt hypothesis.
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His reputation had fallen so far that even fellow academics ignored him.Contemporary critics did poke a hole in his debt-deflation hypothesis: rising real debt makes debtors worse off but creditors better off, so the net effect should be nil.
This idea goes back to at least Irving Fisher's debt deflation hypothesis (1933) and has found empirical support in several studies (Mishkin 1978, King 1994, Olney 1999, Eichengreen and Mitchener 2003, Glick and Lansing 2010, and Mian and Sufi 2010).
Higher leveraged firms tend to have greater absolute discretionary accruals based on the debt covenant hypothesis.
According to the debt substitution hypothesis, there should be a negative relationship between non-debt tax shields and debt usage.
That has left the field open to economists peddling more dystopian stories, such as the "debt supercycle" theory expounded by Ken Rogoff and Steve Keen, and the "secular stagnation" hypothesis, which Larry Summers has resurrected.
In addition, we have also tested the non-debt tax shields hypothesis.
In addition, we test the non-debt tax shields hypothesis which considers other tax shelters different from the interest allowances.
However, the flight to quality occurred less frequently in the European Debt Crisis due to the worse quality of the European sovereign debts, which proves Hypothesis 5 is true.
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CEO of Professional Science Editing for Scientists @ prosciediting.com