The effect of capital structure when expected agency costs are extreme
نویسندگان
چکیده
منابع مشابه
Agency Costs, Risk Management, and Capital Structure
The joint determination of capital structure and investment risk is examined. Optimal capital structure re ects both the tax advantages of debt less default costs (Modigliani-Miller), and the agency costs resulting from asset substitution (Jensen-Meckling). Agency costs restrict leverage and debt maturity and increase yield spreads, but their importance is relatively small for the range of envi...
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ژورنال
عنوان ژورنال: Journal of Financial Economics
سال: 2004
ISSN: 0304-405X
DOI: 10.1016/j.jfineco.2003.07.003