Highlights,A company increases debt to pay dividends or repurchase shares.,It results in higher financial leverage for remaining shareholders.,Often used as a defense against hostile ...

Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author. Business owners today are faced with a critical decision when they need cash: Should ...

Palepu, Krishna G., and Karen H. Wruck. "Consequences of Leveraged Shareholders Payouts: Defensive Voluntary Recapitalization." Harvard Business School Working Paper ...