Open AccessJournal Article
On the Irrelevance of Corporate Financial Policy
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This article is published in Research Papers in Economics.The article was published on 1972-01-01 and is currently open access. It has received 394 citations till now. The article focuses on the topics: Corporate governance.read more
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Journal ArticleDOI
Determinants of corporate borrowing
TL;DR: In this article, the authors predict that corporate borrowing is inversely related to the proportion of market value accounted for by real options and rationalize other aspects of corporate borrowing behavior, such as the practice of matching maturities of assets and debt liabilities.
Posted Content
Two Agency-Cost Explanations of Dividends
TL;DR: In this article, the authors consider the problem of aligning managers' interests with those of investors and offer agency-cost explanations of dividends, and conclude that "these two lines of inquiry rarely meet." Yet logically any dividend policy should be designed to minimize the sum of capital, agency and taxation costs.
Book ChapterDOI
The theory of contracts
Oliver Hart,Bengt Holmstrom +1 more
TL;DR: The authors presented at the World Congress of the Econometric Society, Cambridge, Massachusetts, 1985, The authors, a paper that was later used at the International Journal of Mathematical Information.
Journal ArticleDOI
A liquidity-based model of security design
Peter M. DeMarzo,Darrell Duffie +1 more
TL;DR: The authors characterize the optimal security design in several cases and demonstrate circumstances under which standard debt is optimal and show that the riskiness of the debt is increasing in the issuer's retention costs for assets.
Journal ArticleDOI
A theory of optimal capital structure
TL;DR: In this article, a multi-period model of firm valuation derived under the assumptions that bankruptcy is possible and that secondary markets for assets are imperfect is presented, given the assumption that the probability of bankruptcy is zero, the model is formally identical to that proposed by Modigliani and Miller.
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Journal Article
The Cost of Capital, Corporation Finance and the Theory of Investment
TL;DR: In this article, the effect of financial structure on market valuations has been investigated and a theory of investment of the firm under conditions of uncertainty has been developed for the cost-of-capital problem.
Journal ArticleDOI
The structure of investor preferences and asset returns, and separability in portfolio allocation: a contribution to the pure theory of mutual funds
David Cass,Joseph E. Stiglitz +1 more
TL;DR: In this paper, the structure of investor preferences and asset returns, and separability in portfolio allocation are discussed, and conditions under which the more restrictive separation into risky and safe assets can occur; isolation of the peculiar role played by money.