- Chicago Booth, How should we balance efficiency and equality?
- Stewart, G. Bennett, III, and David M. Glassman, 1988, The motives and methods of corporate restructuring, part II, Journal of Applied Corporate Finance 1, 79-88
Equity is soft, debt hard. Equity is forgiving, debt insistent. Equity is a pillow, debt a sword. Equity and debt are the yin and yang of corporate finance. Equity lulls management to sleep, forgiving their sins more readily than a death-bed priest. A surplus of stock muffles the alarms that should be heard when earnings decline. Forgive and forget is equity’s creed. Debt’s edge jabs management awake, demanding attention. A staggering debt load is a credible threat, compelling necessary changes and exceptional performance.