Leverage and growth opportunities: risk-avoidance induced by risky debt

This paper shows that illiquid growth opportunities crucially impact the agency costs of risky debt. If the value of these growth opportunities is sufficiently high, they reverse riskshifting incentives into risk-avoidance incentives, creating a new agency cost of debt.(...)

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Year of publication:	2002
Authors:	Brito, José Almeida ; John, Kose
Publisher:	Salomon Center for the Study of Financial Institutions <New York, NY> /
Subject:	Agency-Theorie \| Risikoaversion \| Unternehmenswachstum \| company growth \| Risikoausschluss \| risk shifting

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Extent:	211968 bytes 50 p. application/pdf
Series:	Salomon Center for the Study of Financial Institutions <New York, NY> - Publications Salomon Center for the Study of Financial Institutions <New York, NY> - Credit & Debt Markets Research Program ; 2002,01
Type of publication:	Book / Working Paper
Language:	English
Classification:	G30 - Corporate Finance and Governance. General ; G32 - Financing Policy; Capital and Ownership Structure ; Financial theory ; Procurement of outside capital ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10005846833