Measuring Agency Costs over the Business Cycle

摘要: This paper investigates the joint effects of manager-shareholder agency conflicts and macroeconomic risk on corporate policies firm value. I first derive implications a structural model with assets in place an investment opportunity, run by self-interested manager who captures part firm's net income as private benefits. The implies that dynamic aggregate costs are driven firms upper half distribution managers those capture 0.8% firms' average, thereby decreasing value more than 1.6%. These procyclical (1.9% booms 1.3% recessions) because managerial underleverage decreases default particularly recessions. Further, can explain empirical regularities, including level cyclicality leverage.