Finding the Supporting Literature For these 2 hypothesis of Leverage affecting Prices:

Hypothesis 1: firms set higher prices (underinvest in market share) if they have more debt,
Hypothesis 2: firms engage in dynamic risk-shifting by setting lower (higher) prices if the current debt obligation will be higher (lower) in the next period than in the present period

find 2 supporting literature each which already prove these hypothesis and summarize the examples that they use to prove those points.

also attach the documents available.

please take a look at this one, they prove both hypothesis and using the example of Austria hotel. please write as detail as possible <3

and please note that this is about the leverage finance and I need to present those supporting literature to my professor so I need to understand it bad:(( thank youu
Oh, FYI, we have to prove those hypothesis through the market shares aka. how leverage affect Market shares, but still we have to prove those hyperthesis relating price but the focus remain on market shares

Solution Preview

The hypothesis of Leverage Affecting Prices
Hypothesis 1
Stomper, A., &Zulehner, C. (2004). Why Leverage Distorts Investment. JEL, 3.
What is the research about?
The research is about the impact of leverage on investment; it endeavors to test whether leverage affects the price of the commodity.
What are they trying to prove?
The article contemplates why leverage impacts the business’s pricing strategy in the event

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