{"id":8830,"date":"2022-07-27T06:34:38","date_gmt":"2022-07-27T06:34:38","guid":{"rendered":"https:\/\/depocen.org\/publications\/strategic-debt-evidence-from-bertrand-andcournot-competition\/"},"modified":"2022-07-27T06:34:38","modified_gmt":"2022-07-27T06:34:38","slug":"strategic-debt-evidence-from-bertrand-andcournot-competition","status":"publish","type":"publications","link":"https:\/\/depocen.org\/vi\/publications\/strategic-debt-evidence-from-bertrand-andcournot-competition\/","title":{"rendered":"Strategic Debt: Evidence from Bertrand and\r\nCournot Competition."},"content":{"rendered":"<p>We investigate how competitive behavior affects the capital structure of a firm. Theory<br \/>\npredicts that the impact of different types of output market uncertainty (in particular,<br \/>\nunanticipated shocks in demand and costs) on a firm&#8217;s leverage depends on the type of<br \/>\ncompetition in an industry. We test these predictions in a sample of U.S. manufacturing<br \/>\nfirms by classifying firms into Cournot competition (strategic substitutes), and Bertrand<br \/>\ncompetition (strategic complements). We show that demand uncertainty is positively<br \/>\nrelated to leverage for firms in both the Cournot and the Bertrand sample. Cost uncertainty<br \/>\nhas a significantly positive impact on the leverage of Cournot firms, but plays a negligible<br \/>\nrole for Bertrand firms. Our results support the strategic use of debt and highlight the role<br \/>\nof firms&#8217; competitive behavior in the product market in their capital structure decisions.<\/p>\n","protected":false},"featured_media":0,"template":"","cate_publications":[],"author_publications":[1634,1635,1636],"topic_publications":[],"class_list":["post-8830","publications","type-publications","status-publish","hentry","author_publications-abe-de-jong","author_publications-thuy-thu-nguyen","author_publications-mathijs-a-van-dijk"],"acf":[],"_links":{"self":[{"href":"https:\/\/depocen.org\/vi\/wp-json\/wp\/v2\/publications\/8830","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/depocen.org\/vi\/wp-json\/wp\/v2\/publications"}],"about":[{"href":"https:\/\/depocen.org\/vi\/wp-json\/wp\/v2\/types\/publications"}],"wp:attachment":[{"href":"https:\/\/depocen.org\/vi\/wp-json\/wp\/v2\/media?parent=8830"}],"wp:term":[{"taxonomy":"cate_publications","embeddable":true,"href":"https:\/\/depocen.org\/vi\/wp-json\/wp\/v2\/cate_publications?post=8830"},{"taxonomy":"author_publications","embeddable":true,"href":"https:\/\/depocen.org\/vi\/wp-json\/wp\/v2\/author_publications?post=8830"},{"taxonomy":"topic_publications","embeddable":true,"href":"https:\/\/depocen.org\/vi\/wp-json\/wp\/v2\/topic_publications?post=8830"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}