... Cadenillas, Abel, Jaksa Cvitanic, and Fernando Zapatero, 2003, Dynamic principal-agent problems with perfect information, Working paper, USC Clementi, Gian Luca, and Hugo A Hopenhayn, 2002, A ... 1998, Agency costs, risk management, and capital structure, Journal of Finance 53, 1213-1243 Leland, Hayne E., and Klaus.B Toft, 1996, Optimal capital structure, endogenous bankruptcy, and the ... (1984), and Bolton and Scharfstein (1990) See also Innes (1990) for optimal security design in a standard principal-agent setting Dewatripont and Tirole (1994) discuss the role of capital structure...