haku: @author Weisbach, M. S. / yhteensä: 4
viite: 2 / 4
| Tekijä: | Parrino, R. Weisbach, M. S. |
| Otsikko: | Measuring investment distortions arising from stockholder-bondholder conflicts |
| Lehti: | Journal of Financial Economics
1999 : JUL, VOL. 53:1, p. 3-42 |
| Asiasana: | Capital Stock markets Investments Assets |
| Vapaa asiasana: | Monte-Carlo simulation |
| Kieli: | eng |
| Tiivistelmä: | In this paper, it is examined the importance of stockholder-bondholder conflicts in capital-structure choice. Numerical techniques are used to compute the expected wealth transfer btw. stockholders and bondholders when a firm adopts a new project. There are characterized the set of positive NPV projects that stockholders prefer to ignore and the set of negative NPV projects that stockholders want to accept. The results illustrate how these distortions vary with firm and project characteristics. In the paper, the impact of stockholder-bondholder conflicts is estimated on investment decisions for 23 different firms. The extent to which stockholder-bondholder conflicts explain observed cross-sectional variation in capital structures is also examined. |
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