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In each case, dividend issuance decreases and cost increases with the proportion of the sponsors\u2019 recent exits that are failures. Effects are absent for matched firms and prior to the LBO and are procyclical; sponsors with recent failures miss opportunities to decrease financing costs in good times. <\/jats:p><jats:p> This paper was accepted by Bo Becker, finance. <\/jats:p><jats:p> Supplemental Material: The data files are available at https:\/\/doi.org\/10.1287\/mnsc.2023.00971 . <\/jats:p>","DOI":"10.1287\/mnsc.2023.00971","type":"journal-article","created":{"date-parts":[[2024,10,17]],"date-time":"2024-10-17T13:46:11Z","timestamp":1729172771000},"page":"5849-5874","source":"Crossref","is-referenced-by-count":1,"title":["Sponsor Reputation and Capital Structure Dynamics in Leveraged Buyouts"],"prefix":"10.1287","volume":"71","author":[{"ORCID":"https:\/\/orcid.org\/0000-0003-2267-9774","authenticated-orcid":false,"given":"Sophie","family":"Shive","sequence":"first","affiliation":[{"name":"Mendoza College of Business, University of Notre Dame, Notre Dame, Indiana 46556"}]},{"given":"Margaret","family":"Forster","sequence":"additional","affiliation":[{"name":"Mendoza College of Business, University of Notre Dame, Notre Dame, Indiana 46556"}]}],"member":"109","reference":[{"key":"B1","first-page":"363","volume":"88","author":"Achleitner A-K","year":"2018","journal-title":"J. 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