Debt, labor markets, and the creation and destruction of firms

• 成果类型: Article
• 署名作者: Almazan, Andres; de Motta, Adolfo; Titman, Sheridan
• 署名单位: University of Texas System; University of Texas Austin; McGill University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2015.06.009
• 发表日期: 2015
• 页码: 636-657
• 关键词: capital structure; debt; labor markets; unemployment; corporate taxes

摘要

We analyze the financing and liquidation decisions of firms that face a labor market with search frictions. By inducing bankruptcy, debt can facilitate the process of creative destruction (i.e., the elimination of inefficient firms and the creation of new firms) but can also lead to excessive liquidation and unemployment in particular, during economic downturns. Within this setting, we examine policy interventions that influence the firms' financing and liquidation choices. We consider the role of monetary policy, which can reduce debt burdens during economy-wide downturns, and tax policy, which can influence the incentives of firms to use debt financing. (C) 2015 Elsevier B.V. All rights reserved.