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A New Test of Capital Structure
Mayer, Colin; Sussman, Oren - C.E.P.R. Discussion Papers - 2004
satisfactory descriptions of these dynamic features of corporate financing. …
Persistent link: https://www.econbiz.de/10005067393
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Financing Through Asset Sales
Edmans, Alex; Mann, William - C.E.P.R. Discussion Papers - 2013
Most research on firm financing studies the choice between debt and equity. We model an alternative source -- non … issues equity if the financing need is high. This result is robust to using the cash for an uncertain investment. Second …
Persistent link: https://www.econbiz.de/10011084569
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Essential Facility Financing and Market Structure
Caillaud, Bernard; Tirole, Jean - C.E.P.R. Discussion Papers - 2001
The Paper analyses the funding of an infrastructure project (high speed train line, platform, tunnel, harbor, regional airport, fibre-to-the-home network, etc.) in a situation in which an incumbent operator has private information about market profitability (demand, cost) and the infrastructure...
Persistent link: https://www.econbiz.de/10005662107
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Capital Structure and Regulation: Do Ownership and Regulatory Independence Matter?
Bortolotti, Bernardo; Cambini, Carlo; Rondi, Laura; … - C.E.P.R. Discussion Papers - 2008
We construct a comprehensive panel data of 92 publicly traded European utilities over the period 1994-2005 in order to study the relationship between capital structure, regulated prices, and firm value, and examine if and how this interaction is affected by ownership structure and regulatory...
Persistent link: https://www.econbiz.de/10005497873
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Moral Hazard and Capital Structure Dynamics
Dewatripont, Mathias; Legros, Patrick; Matthews, Steven A - C.E.P.R. Discussion Papers - 2002
We base a contracting theory for a start-up firm on an agency model with observable but nonverifiable effort, and renegotiable contracts. Two essential restrictions on simple contracts are imposed: the entrepreneur must be given limited liability, and the investor's earnings must not decrease in...
Persistent link: https://www.econbiz.de/10005498043
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Bank Capital, Liquid Reserves, and Insolvency Risk
Hugonnier, Julien; Morellec, Erwan - C.E.P.R. Discussion Papers - 2015
We develop a dynamic model to assess the effects of liquidity and leverage requirements on banks' insolvency risk. The model features endogenous capital structure, liquid asset holdings, payout, and default decisions. In the model, banks face taxation, flotation costs of securities, and default...
Persistent link: https://www.econbiz.de/10011165669
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Thin Capitalization Rules and Multinational Firm Capital Structure
Blouin, Jennifer; Huizinga, Harry; Laeven, Luc; … - C.E.P.R. Discussion Papers - 2014
This paper examines the impact of thin capitalization rules that limit the tax deductibility of interest on the capital structure of the foreign affiliates of US multinationals. We construct a new data set on thin capitalization rules in 54 countries for the period 1982-2004. Using confidential...
Persistent link: https://www.econbiz.de/10011083337
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Borrow Cheap, Buy High? The Determinants of Leverage and Pricing in Buyouts
Axelson, Ulf; Jenkinson, Tim; Strömberg, Per Johan; … - C.E.P.R. Discussion Papers - 2012
Private equity funds pay particular attention to capital structure when executing leveraged buyouts, creating an interesting setting for examining capital structure theories. Using a large, detailed, international sample of buyouts from 1980-2008, we find that buyout leverage is unrelated to the...
Persistent link: https://www.econbiz.de/10011083386
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Preserving "Debt Capacity" or "Equity Capacity": A Dynamic Theory of Security Design under Asymmetric Information
Inderst, Roman; Vladimirov, Vladimir - C.E.P.R. Discussion Papers - 2014
underinvestment or overinvestment when they must raise future financing under asymmetric information. Which problem arises depends on … whether additional financing is raised at competitive terms or whether there is a lock-in with initial investors. Firms … theory also entails implications for start-up and venture capital financing. …
Persistent link: https://www.econbiz.de/10011084368
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The Macroeconomics of Modigliani-Miller
Gersbach, Hans; Haller, Hans; Müller, Jürg - C.E.P.R. Discussion Papers - 2013
We examine the validity of a macroeconomic version of the Modigliani-Miller theorem. For this purpose, we develop a general equilibrium model with two production sectors, risk-averse households and financial intermediation by banks. Banks are funded by deposits and (outside) equity and monitor...
Persistent link: https://www.econbiz.de/10011084423