search query: @author Morellec, E. / total: 5
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| Author: | Morellec, E. Smith, C.W. Jr. |
| Title: | Agency conflicts and risk management |
| Journal: | Review of finance
2007 : MAR, VOL. 11:1, p. 1-23 |
| Index terms: | financial institutions investments shareholders risk management |
| Freeterms: | agency conflicts |
| Language: | eng |
| Abstract: | In this paper, the relation btw. agency conflicts and risk management is analyzed incorporating both stockholder-debtholder conflicts and manager-stockholder conflicts. The costs of both underinvestment and overinvestment are shown to be essential in determining the firm's hedging policy. Especially, firms deriving more of their value from assets in place, although having lower costs of underinvestment, generally display larger costs of overinvestment etc. |
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