haku: @indexterm Corporate finance / yhteensä: 722
viite: 67 / 722
| Tekijä: | Bigus, J. |
| Otsikko: | Heterogeneous Beliefs, Moral Hazard, and Capital Structure |
| Lehti: | Schmalenbach Business Review
2003 : APR, VOL. 55:2, p. 136-160 |
| Asiasana: | BEHAVIOURAL SCIENCE FINANCE CORPORATE FINANCE MORAL HAZARD |
| Kieli: | eng |
| Tiivistelmä: | This paper provides a hew approach to the theory of capital structure by emphasizing the issue that investors and entrepreneurs may have heterogeneous beliefs on future firm returns. Heterogeneous beliefs are possible even when there is symmetric information but individuals evaluate the same information differently. Although heterogeneous beliefs might be an important issue in real life, corporate finance theory hardly addresses them. When heterogeneous beliefs and moral hazard exist, a debt-equity mix might outperform pure debt or pure equity. The author examines a situation in which there is perk consumption (which favors debt) and heterogeneous beliefs on project risk (which favors equity in case of risk neutrality) and heterogeneous beliefs on the project's mean (which favors debt). |
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