The rationality of honesty in debt markets
Article Abstract:
Agency Theory has been used to explain a wide range of economic issues related to finance. However, agency models have so far been unable to explain financially 'honest' behavior on the part of a firm's managers. This may be due to the undue importance they attached to the individual pursuit of wealth. An agency model that seeks to explain honesty in debt markets is developed.
Publication Name: Managerial Finance
Subject: Business
ISSN: 0307-4358
Year: 1996
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Am empirical assessment of factors affecting corporate debt levels
Article Abstract:
Corporations are found to show capital structures that are not in accordance to the perfect market theory. It has been found that several explanatory variables, such as firm diversity, asset type, availability of tax shields, management-owner relationship and level of business risk contribute to a firm's debt levels.
Publication Name: Managerial Finance
Subject: Business
ISSN: 0307-4358
Year: 1996
User Contributions:
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