{"id":"https://openalex.org/W2234548337","doi":"https://doi.org/10.1111/fire.12096","title":"The Debt Trap: Wealth Transfers and Debt\u2010Equity Choices of Junk\u2010Grade Firms","display_name":"The Debt Trap: Wealth Transfers and Debt\u2010Equity Choices of Junk\u2010Grade Firms","publication_year":2016,"publication_date":"2016-01-12","ids":{"openalex":"https://openalex.org/W2234548337","doi":"https://doi.org/10.1111/fire.12096","mag":"2234548337"},"language":"en","primary_location":{"id":"doi:10.1111/fire.12096","doi":"https://doi.org/10.1111/fire.12096","is_oa":false,"landing_page_url":"https://doi.org/10.1111/fire.12096","pdf_url":null,"source":{"id":"https://openalex.org/S9351053","display_name":"Financial Review","issn_l":"0732-8516","issn":["0732-8516","1540-6288"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a","anvur-scientific","cwts-core","fnege-3","jufo-1","norway-1","poland-70","russia-white-list-2"],"host_organization":"https://openalex.org/P4310320595","host_organization_name":"Wiley","host_organization_lineage":["https://openalex.org/P4310320595"],"host_organization_lineage_names":["Wiley"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Financial Review","raw_type":"journal-article"},"volume":null,"type":"article","indexed_in":["crossref"],"open_access":{"is_oa":false,"oa_status":"closed","oa_url":null,"any_repository_has_fulltext":false},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5064541080","display_name":"Palani\u2010Rajan Kadapakkam","orcid":"https://orcid.org/0000-0001-7350-0629","observed_orcids":["https://orcid.org/0000-0001-7350-0629"]},"institutions":[{"id":"https://openalex.org/I45438204","display_name":"The University of Texas at San Antonio","ror":"https://ror.org/01kd65564","country_code":"US","type":"education","lineage":["https://openalex.org/I45438204"]}],"countries":["US"],"is_corresponding":false,"raw_author_name":"Palani\u2010Rajan Kadapakkam","raw_affiliation_strings":["University of Texas at San Antonio"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"University of Texas at San Antonio","institution_ids":["https://openalex.org/I45438204"]}]},{"author_position":"middle","author":{"id":"https://openalex.org/A5045405311","display_name":"Alex Meisami","orcid":"https://orcid.org/0009-0006-7415-6173","observed_orcids":["https://orcid.org/0009-0006-7415-6173","https://orcid.org/0009-0008-9540-4329"]},"institutions":[{"id":"https://openalex.org/I4210134870","display_name":"Indiana University South Bend","ror":"https://ror.org/02s1hvj37","country_code":"US","type":"education","lineage":["https://openalex.org/I4210134870","https://openalex.org/I592451"]}],"countries":["US"],"is_corresponding":true,"raw_author_name":"Alex Meisami","raw_affiliation_strings":["Indiana University South Bend"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Indiana University South Bend","institution_ids":["https://openalex.org/I4210134870"]}]},{"author_position":"last","author":{"id":"https://openalex.org/A5030673953","display_name":"John K. Wald","orcid":"https://orcid.org/0000-0001-7159-9549","observed_orcids":["https://orcid.org/0000-0001-7159-9549"]},"institutions":[{"id":"https://openalex.org/I45438204","display_name":"The University of Texas at San Antonio","ror":"https://ror.org/01kd65564","country_code":"US","type":"education","lineage":["https://openalex.org/I45438204"]}],"countries":["US"],"is_corresponding":false,"raw_author_name":"John K. Wald","raw_affiliation_strings":["University of Texas at San Antonio"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"University of Texas at San Antonio","institution_ids":["https://openalex.org/I45438204"]}]}],"institutions":[],"countries_distinct_count":1,"institutions_distinct_count":2,"corresponding_author_ids":["https://openalex.org/A5045405311"],"corresponding_institution_ids":["https://openalex.org/I4210134870"],"apc_list":{"value":2900,"currency":"USD","value_usd":2900},"apc_paid":null,"fwci":10.9728,"has_fulltext":false,"cited_by_count":19,"citation_normalized_percentile":{"value":0.97801225,"is_in_top_1_percent":false,"is_in_top_10_percent":true},"cited_by_percentile_year":{"min":89,"max":98},"biblio":{"volume":"51","issue":"1","first_page":"5","last_page":"35"},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T10019","display_name":"Corporate Finance and Governance","score":0.9872999787330627,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T10019","display_name":"Corporate Finance and Governance","score":0.9872999787330627,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T12509","display_name":"Corporate Insolvency and Governance","score":0.006399999838322401,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T11653","display_name":"Financial Distress and Bankruptcy Prediction","score":0.0020000000949949026,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/debt-equity-choice","display_name":"debt-equity choice","score":0.8289999961853027},{"id":"https://openalex.org/keywords/financial-leverage","display_name":"leverage","score":0.4350000023841858},{"id":"https://openalex.org/keywords/bankruptcy-costs","display_name":"bankruptcy costs","score":0.7099999785423279},{"id":"https://openalex.org/keywords/trade-off-theory","display_name":"trade-off theory","score":0.8069999814033508},{"id":"https://openalex.org/keywords/stock-issuance","display_name":"share issuance","score":0.5929999947547913},{"id":"https://openalex.org/keywords/debt-issuance","display_name":"debt issuance","score":0.8169999718666077},{"id":"https://openalex.org/keywords/investment-grade-firms","display_name":"investment-grade firms","score":0.6959999799728394},{"id":"https://openalex.org/keywords/corporate-financing-decisions","display_name":"corporate financing decisions","score":0.5690000057220459}],"concepts":[{"id":"https://openalex.org/C153083717","wikidata":"https://www.wikidata.org/wiki/Q6535263","display_name":"Leverage (statistics)","level":2,"score":0.7405450344085693},{"id":"https://openalex.org/C120527767","wikidata":"https://www.wikidata.org/wiki/Q3196867","display_name":"Debt","level":2,"score":0.7205125093460083},{"id":"https://openalex.org/C175647561","wikidata":"https://www.wikidata.org/wiki/Q1347876","display_name":"Equity value","level":5,"score":0.6736725568771362},{"id":"https://openalex.org/C556758197","wikidata":"https://www.wikidata.org/wiki/Q580018","display_name":"Monetary economics","level":1,"score":0.6121556758880615},{"id":"https://openalex.org/C199728807","wikidata":"https://www.wikidata.org/wiki/Q2578557","display_name":"Equity (law)","level":2,"score":0.5900635719299316},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.5372400879859924},{"id":"https://openalex.org/C504631918","wikidata":"https://www.wikidata.org/wiki/Q152074","display_name":"Bankruptcy","level":2,"score":0.4705562889575958},{"id":"https://openalex.org/C121426499","wikidata":"https://www.wikidata.org/wiki/Q167064","display_name":"Gearing ratio","level":5,"score":0.46766984462738037},{"id":"https://openalex.org/C74153512","wikidata":"https://www.wikidata.org/wiki/Q167064","display_name":"Debt-to-equity ratio","level":4,"score":0.45785486698150635},{"id":"https://openalex.org/C2992672087","wikidata":"https://www.wikidata.org/wiki/Q3196867","display_name":"Debt financing","level":3,"score":0.44930580258369446},{"id":"https://openalex.org/C144133560","wikidata":"https://www.wikidata.org/wiki/Q4830453","display_name":"Business","level":0,"score":0.4032739996910095},{"id":"https://openalex.org/C202189257","wikidata":"https://www.wikidata.org/wiki/Q2915683","display_name":"Internal debt","level":3,"score":0.3908347487449646},{"id":"https://openalex.org/C106159729","wikidata":"https://www.wikidata.org/wiki/Q2294553","display_name":"Financial economics","level":1,"score":0.3467905819416046},{"id":"https://openalex.org/C10138342","wikidata":"https://www.wikidata.org/wiki/Q43015","display_name":"Finance","level":1,"score":0.28961098194122314},{"id":"https://openalex.org/C22270272","wikidata":"https://www.wikidata.org/wiki/Q5248601","display_name":"Debt levels and flows","level":4,"score":0.24148958921432495},{"id":"https://openalex.org/C2908647359","wikidata":"https://www.wikidata.org/wiki/Q2625603","display_name":"Population","level":2,"score":0.05419495701789856},{"id":"https://openalex.org/C100363876","wikidata":"https://www.wikidata.org/wiki/Q690661","display_name":"Nonprobability sampling","level":3,"score":0.0},{"id":"https://openalex.org/C41008148","wikidata":"https://www.wikidata.org/wiki/Q21198","display_name":"Computer science","level":0,"score":0.0},{"id":"https://openalex.org/C199539241","wikidata":"https://www.wikidata.org/wiki/Q7748","display_name":"Law","level":1,"score":0.0},{"id":"https://openalex.org/C144024400","wikidata":"https://www.wikidata.org/wiki/Q21201","display_name":"Sociology","level":0,"score":0.0},{"id":"https://openalex.org/C119857082","wikidata":"https://www.wikidata.org/wiki/Q2539","display_name":"Machine learning","level":1,"score":0.0},{"id":"https://openalex.org/C17744445","wikidata":"https://www.wikidata.org/wiki/Q36442","display_name":"Political science","level":0,"score":0.0},{"id":"https://openalex.org/C149923435","wikidata":"https://www.wikidata.org/wiki/Q37732","display_name":"Demography","level":1,"score":0.0}],"mesh":[],"locations_count":1,"locations":[{"id":"doi:10.1111/fire.12096","doi":"https://doi.org/10.1111/fire.12096","is_oa":false,"landing_page_url":"https://doi.org/10.1111/fire.12096","pdf_url":null,"source":{"id":"https://openalex.org/S9351053","display_name":"Financial Review","issn_l":"0732-8516","issn":["0732-8516","1540-6288"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a","anvur-scientific","cwts-core","fnege-3","jufo-1","norway-1","poland-70","russia-white-list-2"],"host_organization":"https://openalex.org/P4310320595","host_organization_name":"Wiley","host_organization_lineage":["https://openalex.org/P4310320595"],"host_organization_lineage_names":["Wiley"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Financial Review","raw_type":"journal-article"}],"best_oa_location":null,"sustainable_development_goals":[],"sustainable_development_goals_aurora":[{"id":"https://metadata.un.org/sdg/17","display_name":"Partnerships for the goals","score":0.41999998688697815}],"study_designs":[],"awards":[],"funders":[],"has_content":{"grobid_xml":false,"pdf":false},"content_urls":null,"referenced_works_count":47,"referenced_works":["https://openalex.org/W1969219446","https://openalex.org/W2000578291","https://openalex.org/W2005903872","https://openalex.org/W2046638999","https://openalex.org/W2071206222","https://openalex.org/W2081113003","https://openalex.org/W2086281961","https://openalex.org/W2091596451","https://openalex.org/W2106605532","https://openalex.org/W2113305199","https://openalex.org/W2136120210","https://openalex.org/W2136491889","https://openalex.org/W2138593640","https://openalex.org/W2140358882","https://openalex.org/W2151088980","https://openalex.org/W2155657697","https://openalex.org/W2158953077","https://openalex.org/W2161707585","https://openalex.org/W2188367943","https://openalex.org/W2320723619","https://openalex.org/W2739874307","https://openalex.org/W2891796810","https://openalex.org/W3044580829","https://openalex.org/W3121819860","https://openalex.org/W3121869985","https://openalex.org/W3122051430","https://openalex.org/W3122073963","https://openalex.org/W3122132102","https://openalex.org/W3122206384","https://openalex.org/W3122355488","https://openalex.org/W3122398884","https://openalex.org/W3122420217","https://openalex.org/W3122680622","https://openalex.org/W3122957897","https://openalex.org/W3123142049","https://openalex.org/W3123474679","https://openalex.org/W3123945453","https://openalex.org/W3124114405","https://openalex.org/W3124117485","https://openalex.org/W3124228444","https://openalex.org/W3124384202","https://openalex.org/W3124450204","https://openalex.org/W3124871904","https://openalex.org/W3124896946","https://openalex.org/W3125160976","https://openalex.org/W3125372646","https://openalex.org/W4246259718"],"related_works":["https://openalex.org/W4236657718","https://openalex.org/W6959716025","https://openalex.org/W3123945453","https://openalex.org/W1583622431","https://openalex.org/W7111964167","https://openalex.org/W3124370892","https://openalex.org/W3122687213","https://openalex.org/W7096608719","https://openalex.org/W1541037087","https://openalex.org/W1480052452"],"abstract_inverted_index":{"Abstract":[0],"If":[1,16],"outstanding":[2],"debt":[3,14],"is":[4,19],"risky,":[5],"issuing":[6,53,81],"equity":[7,11],"transfers":[8],"wealth":[9,27,68],"from":[10,35],"holders":[12],"to":[13,33],"holders.":[15],"existing":[17],"leverage":[18,47,75],"high":[20],"and":[21],"bankruptcy":[22],"costs":[23],"are":[24],"small,":[25],"this":[26],"transfer":[28,69],"effect":[29],"outweighs":[30],"the":[31,65],"gains":[32],"stockholders":[34],"optimizing":[36],"firm":[37],"value.":[38],"Empirically,":[39],"we":[40],"find":[41],"that":[42],"for":[43,71],"investment\u2010grade":[44],"firms,":[45,73],"higher":[46,74],"implies":[48,76,85],"a":[49,58,77],"greater":[50,78],"likelihood":[51,79],"of":[52,67,80],"equity,":[54],"as":[55],"expected":[56],"in":[57],"standard":[59],"tradeoff":[60],"model.":[61],"However,":[62],"consistent":[63],"with":[64],"impact":[66],"effects,":[70],"junk\u2010grade":[72],"debt.":[82],"The":[83],"analysis":[84],"an":[86],"additional":[87],"route":[88],"through":[89],"which":[90],"historical":[91],"shocks":[92],"determine":[93],"firms\u2019":[94],"financing":[95],"choices.":[96]},"counts_by_year":[{"year":2026,"cited_by_count":2},{"year":2025,"cited_by_count":1},{"year":2024,"cited_by_count":1},{"year":2022,"cited_by_count":1},{"year":2018,"cited_by_count":1},{"year":2017,"cited_by_count":5},{"year":2016,"cited_by_count":3},{"year":2015,"cited_by_count":4},{"year":2014,"cited_by_count":1}],"updated_date":"2026-10-16T09:59:22.235173","created_date":"2016-06-24T00:00:00"}
