haku: @indexterm GEARING / yhteensä: 211
viite: 54 / 211
Tekijä: | Flannery, M. |
Otsikko: | Debt maturity and the deadweight cost of leverage: optimally financing banking firms |
Lehti: | American Economic Review
1994 : MAR, VOL. 84:1, p. 320-331 |
Asiasana: | DEBT GEARING COMPANIES |
Kieli: | eng |
Tiivistelmä: | Levered firms operate with distorted investment incentives: they will fail to implement some investment projects with positive nit present value (NPV) and may undertake negative-NPV projects which sufficiently increase their portfolio risk. These investment distortions reduce firm value, and in efficient financial markets firm shareholders fully bear the costs of inappropriate investments. Accordingly, shareholders employ debt-contracting mechanisms that reduce their investment distortions. |
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