Abstracts - faqs.org

Abstracts

Business

Search abstracts:
Abstracts » Business

Market created risk

Article Abstract:

We develop a multiperiod rational expectations model of securities market equilibrium in which equilibrium prices may move between periods even though it is common knowledge that no new information has arrived about ultimate security payoffs. This happens because investors know they have imperfect information about the endowments of other investors and this knowledge affects their probability beliefs about the prices that will prevail at the intermediate trading date. These beliefs are reflected in the equilibrium at the initial trading date when investors focus on the probabilities of intermediate capital gains and losses, rather than ultimate payoffs. (Reprinted by permission of the publisher.)

Author: Kraus, Alan, Smith, Maxwell
Publisher: Blackwell Publishers Ltd.
Publication Name: Journal of Finance
Subject: Business
ISSN: 0022-1082
Year: 1989
Research, Securities, Risk management, Financial markets

User Contributions:

Comment about this article or add new information about this topic:

CAPTCHA


Do taxes affect corporate financing decisions?

Article Abstract:

This paper provides clear evidence of substantial tax effects on the choice between issuing debt or equity; most studies fail to find significant effects. The relationship between tax shields and debt policy is clarified. Other papers miss the fact that most tax shields have a negligible effect on the marginal tax rate for most firms. New predictions are strongly supported by an empirical analysis; the method is to study incremental financing decisions using discrete choice analysis. Previous researchers examined debt/equity ratios, but tests based on incremental decisions should have greater power. (Reprinted by permission of the publisher.)

Author: MacKie-Mason, Jeffrey K.
Publisher: Blackwell Publishers Ltd.
Publication Name: Journal of Finance
Subject: Business
ISSN: 0022-1082
Year: 1990
Analysis, Finance, Corporations, Corporate finance, Tax shelters, Financial research

User Contributions:

Comment about this article or add new information about this topic:

CAPTCHA


Similar abstracts:
  • Abstracts: The effect of taxes and depreciation on corporate investment and financial leverage. Tax arbitrage and the existence of equilibrium prices for financial assets
  • Abstracts: An empirical investigation of the market for Comex gold futures options. Default premiums in commodity markets: theory and evidence
This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.
Some parts © 2025 Advameg, Inc.