Capital Structure and Product Market Behavior: An Examination of Plant Exit and Investment Decisions
研究杠杆收购和资本重组带来的债务大幅增加如何影响企业及其竞争对手的工厂关闭和投资决策，发现高集中度行业中杠杆企业更可能关闭工厂、减少投资，而竞争对手则相反。
We examine whether sharp debt increases through leveraged buyouts and recapitalizations interact with market structure to influence plant closing and investment decisions of recapitalizing firms and their rivals. We take into account the fact that recapitalizations and investment decisions are both endogenous and may be simultaneously influenced by the same exogenous events. Following their recapitalizations, firms in industries with high concentration are more likely to close plants and less likely to invest. Rival firms are less likely to close plants and more likely to invest when the market share of leveraged firms is higher.