CAPITAL STRUCTURE AND INCOME INEQUALITY

Using the new issuance of equity and corporate bond data series, thisresearch …finds that recent surge in top incomes shares have negative e¤ecton the capital structure choice of North American …rms. This paper alsouses information from fi…rm speci…c and macroeconomic variables to explainthe dynamics of capital structure choice of OECD fi…rms. The result ofthis empirical study provides some of the insights from modern capitalstructure theory. But these traditional determinants might not have therobust explanatory power in explaining the capital structure choice of afirm.