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The Effect of Leverage on Bidding Behavior: Theory and Evidence from the FCC Auctions

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  • Matthew J. Clayton
  • S. Abraham Ravid

Abstract

This paper investigates how firms’ bidding behavior in various auctions is affected by capital structure. A theoretical model is developed where the first price sealed bid and the English auction are examined. We find as debt levels increase, firms tend to

Suggested Citation

  • Matthew J. Clayton & S. Abraham Ravid, 1999. "The Effect of Leverage on Bidding Behavior: Theory and Evidence from the FCC Auctions," New York University, Leonard N. Stern School Finance Department Working Paper Seires 99-055, New York University, Leonard N. Stern School of Business-.
    • Handle: RePEc:fth:nystfi:99-055
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    File URL: http://www.stern.nyu.edu/fin/workpapers/papers99/wpa99055.pdf
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    References listed on IDEAS

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