search query: @indexterm capital structure of companies / total: 353
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Author: | Childs, P.D. Mauer, D.C. Ott, S.H. |
Title: | Interactions of corporate financing and investment decisions: the effects of agency conflicts |
Journal: | Journal of Financial Economics
2005 : JUNE, VOL. 76:3, p. 667-690 |
Index terms: | Agency theory Capital structure of companies Corporate finance |
Language: | eng |
Abstract: | This article investigates interactions between flexible financing and investment decisions in a model with shareholder-bondholder conflicts over investment policy. The writers find that financial flexibility encourages the choice of short-term debt thereby substantially reducing the agency costs of under- and overinvestment. |
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