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The strategic behavior of firms with debt

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dc.affiliation.dptoUC3M. Departamento de Economía de la Empresaes
dc.contributor.authorReboul, Jérôme
dc.contributor.authorToldrà, Anna
dc.contributor.funderMinisterio de Ciencia y Tecnología (España)es
dc.contributor.funderComunidad de Madrides
dc.date.accessioned2022-04-21T13:38:34Z
dc.date.available2022-04-21T13:38:34Z
dc.date.issued2016-11-01
dc.description.abstractWe empirically study the strategic behavior of levered firms in competitive and noncompetitive environments. We find that regulation induces firms to increase leverage, and this reduces their ability to compete when deregulation occurs. Large and small levered firms adopt different strategies upon deregulation. Whereas more levered small firms charge higher prices to increase margins at the expense of market shares, highly levered large firms prey on their rivals by increasing output and reducing prices to increase their market shares. The difference in their behavior is due to differences in their probability of bankruptcy and their financing constraints.en
dc.description.sponsorshipToldrà-Simats thanks the Spanish Ministerio de Ciencia y Tecnologia for the financial support received (Grant ECO2012-36559) and Fundaci´on Ramon Areces for the research funding (Grant 2015/00442/001).en
dc.identifier.bibliographicCitationReboul, J., & Toldrà-Simats, A. (2016). The strategic behavior of firms with debt. Journal of Financial and Quantitative Analysis, 51(5), pp.1611-1636.es
dc.identifier.doihttps://doi.org/10.1017/S0022109016000673
dc.identifier.issn0022-1090
dc.identifier.publicationfirstpage1611es
dc.identifier.publicationissue5es
dc.identifier.publicationlastpage1636es
dc.identifier.publicationtitleJOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSISes
dc.identifier.publicationvolume51es
dc.identifier.urihttps://hdl.handle.net/10016/34593
dc.identifier.uxxiAR/0000019143
dc.language.isoenges
dc.publisherCambridge University Presses
dc.relation.projectIDGobierno de España. ECO2012-36559es
dc.relation.projectIDComunidad de Madrid. 2015/00442/001es
dc.rights© Michael G. Foster School of Business, University of Washington 2016es
dc.rights.accessRightsopen accesses
dc.subject.otherLeverageen
dc.subject.otherCompetitionen
dc.subject.otherFirmsizeen
dc.subject.otherRegulationes
dc.subject.otherEndogeneityen
dc.titleThe strategic behavior of firms with debten
dc.typeresearch article*
dc.type.hasVersionVoR*
dspace.entity.typePublication
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