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Corporate Governance and Capital Structure Dynamics
20 Jan 2012, 6:38 am by R. Christopher Small, Co-editor, HLS Forum on Corporate Governance and Financial Regulation,
Debt constrains the manager by reducing the free cash flow and potential cash diversion (as in Jensen, 1986, Zwiebel, 1996, or Morellec, 2004). [read post]
The Harvard Law School Corporate Governance Blog - http://blogs.law.harvard.edu/corpgov