Similar Search Results

Fahn, Matthias; Merlo, Valeria; Wamser, Georg - 2017

analysis provides an explanation for why some firms only use little debt financing. Predictions made by our theory are in line …

Persistent link: https://www.econbiz.de/10011714630

The commitment role of equity financing

Fahn, Matthias; Wamser, Georg; Merlo, Valeria - 2017

analysis provides an explanation for why some firms only use little debt financing. Predictions made by our theory are in line …

Persistent link: https://www.econbiz.de/10011705222

Information transparency of firm financing

Noël, Antoine L.; Sun, Amy Hongfei - 2021

We propose a theory of optimal firm financing given nested information problems of adverse selection and agency cost …

Persistent link: https://www.econbiz.de/10012547888

Event risk covenants, design parameters and agency issues : a comparative study of high yield versus investment grade bonds

Tewari, Manish - In: Verslas : teorija ir praktika : Vilniaus Gedimino … 19 (2018), pp. 331-341

We analyse security design parameters of 1,115 high yield (HY) and investment grade (IG) event risk covenants (ERC) protected issues between 1986 and 2012 from the agency conflict perspective. We find positive and significant stock price reaction to the issuance of HY but not the IG issues....

Persistent link: https://www.econbiz.de/10012019392

A theory of outside equity : financing multiple projects

Bougheas, Spiros P.; Wang, Tianxi - 2019

In the financial economics literature debt contracts provide efficient solutions for addressing managerial moral hazard problems. We analyze a model with multiple projects where the manager obtains private information about their quality after the contract with investors is agreed. The...

Persistent link: https://www.econbiz.de/10011962270

Chapter 4. Financing of Corporations

Myers, Stewart C. - 2003

This review evaluates the four major theories of corporate financing: (1) the Modigliani–Miller theory of capital …-structure irrelevance, in which firm values and real investment decisions are unaffected by financing; (2) the trade-off theory, in which … financing responds to managers’ personal incentives; and (4) the pecking-order theory, in which financing adapts to mitigate …

Persistent link: https://www.econbiz.de/10014023872

Private Equity Fund Debt : Capital Flows, Performance, and Agency Costs

Albertus, James F. - 2020

A subscription line of credit (SLC) is debt issued to a private equity fund and used on a continuing basis. Using new data on U.S. buyout funds, we show that when funds use subscription lines of credit they call less capital. We find that funds using SLCs have substantial distortions in...

Persistent link: https://www.econbiz.de/10012848806

Bank leverage, welfare, and regulation

Admati, Anat R.; Hellwig, Martin - 2018

We take issue with claims that the funding mix of banks, which makes them fragile and crisis-prone, is efficient because it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy that banks' distress and default cause, such claims are...

Persistent link: https://www.econbiz.de/10011925841

Bank leverage, welfare, and regulation

Admati, Anat R.; Hellwig, Martin - 2018 - Revised January 14, 2019

We take issue with claims that the funding mix of banks, which makes them fragile and crisisprone, is efficient because it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy that banks' distress and default cause, such claims are...

Persistent link: https://www.econbiz.de/10011977827

The Dynamics of Investment, Payout and Debt

Lambrecht, Bart M. - 2017

We develop a dynamic agency model of a public corporation. Managers underinvest because of risk aversion. They smooth rents and payout. They do not exploit interest tax shields fully. The interactions of investment, debt and payout decisions can change drastically depending on managers'...

Persistent link: https://www.econbiz.de/10012972612