The objective of this study is to examine the role of regulatory oversight in firms' choice of debt. Using the signing of the Multilateral Memorandum of Understanding (MMoU) as a quasi-natural experiment, we find that enhanced SEC oversight facilitates public debt contracting, especially for firms with severe agency problems. Our study has important implications for both research and practice.
No takes yet. Share an insight, caveat, or question.
Dak-Adzaklo et al. (2024) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: