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Results 1 - 10
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2,199
Insiders and Outsiders: The Choice between Informed and Arm's-Length Debt
, 1991
"... While the benefits of bank financing are relatively well understood, the costs are not. This paper argues that while informed banks make flexible financial decisions which prevent a firm's projects from going awry, the cost of this credit is that banks have bargaining power over the firm's ..."
Abstract
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Cited by 868 (16 self)
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's profits, once projects have begun. The firm's portfolio choice of borrowing source and the choice of priority for its debt claims attempt to optimally circumscribe the powers of banks.
Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure
, 1976
"... This paper integrates elements from the theory of agency, the theory of property rights and the theory of finance to develop a theory of the ownership structure of the firm. We define the concept of agency costs, show its relationship to the ‘separation and control’ issue, investigate the nature of ..."
Abstract
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Cited by 3043 (12 self)
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of the agency costs generated by the existence of debt and outside equity, demonstrate who bears costs and why, and investigate the Pareto optimality of their existence. We also provide a new definition of the firm, and show how our analysis of the factors influencing the creation and issuance of debt
House Prices, Borrowing Constraints, and Monetary Policy in the Business Cycle
, 2002
"... I develop a general equilibrium model with sticky prices, credit constraints, nominal loans and asset prices. Changes in asset prices modify agents ’ borrowing capacity through collateral value; changes in nominal prices affect real repayments through debt deflation. Monetary policy shocks move asse ..."
Abstract
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Cited by 512 (10 self)
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, debt indexation and household and firm leverage in the propagation mechanism. Finally, I find that monetary policy should not target asset prices as a means of reducing output and inflation volatility.
Managerial Discretion and Optimal Financing Policies
- J. Finan. Econ
, 1990
"... I analyze financing policies in a firm owned by atomistic shareholders who observe neither cash flows nor management’s investment decisions. Management derives perquisites from investment and invests as much as possible. Since it always claims that cash flow is too low to fund all positive net prese ..."
Abstract
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Cited by 453 (18 self)
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I analyze financing policies in a firm owned by atomistic shareholders who observe neither cash flows nor management’s investment decisions. Management derives perquisites from investment and invests as much as possible. Since it always claims that cash flow is too low to fund all positive net
Agency costs of free cash flow, corporate finance and takeovers
- American Economic Review
, 1986
"... The interests and incentives of managers and shareholders conflict over such issues as the optimal size of the firm and the payment of cash to shareholders. These conflicts are especially severe in firms with large free cash flows—more cash than profitable investment opportunities. The theory develo ..."
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Cited by 2311 (11 self)
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The interests and incentives of managers and shareholders conflict over such issues as the optimal size of the firm and the payment of cash to shareholders. These conflicts are especially severe in firms with large free cash flows—more cash than profitable investment opportunities. The theory
Motivation through the Design of Work: Test of a Theory. Organizational Behavior and Human Performance,
, 1976
"... A model is proposed that specifies the conditions under which individuals will become internally motivated to perform effectively on their jobs. The model focuses on the interaction among three classes of variables: (a) the psychological states of employees that must be present for internally motiv ..."
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Cited by 622 (2 self)
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for this state of affairs is that existing theories of work The authors express great appreciation to members of the consulting firm that helped us gain access to the organizations where this research was conducted; to Kenneth Brousseau, Daniel Feldman, and Linda Frank for assistance in data collection
Testing Tradeoff and Pecking Order Predictions about Dividends and Debt
- Review of Financial Studies
, 2000
"... We test the dividend and leverage predictions of the tradeoff and pecking order models. As both models predict, more profitable firms have higher long-term dividend payouts, and firms with more investments have lower payouts. Confirming the pecking order model but contradicting the tradeoff model, m ..."
Abstract
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Cited by 367 (3 self)
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competing models of financing decisions. In the tradeoff model, firms identify their optimal l...
Testing Static Trade-Off against Pecking Order Models of Capital Structure
- Journal of Financial Economics
, 1999
"... This paper tests traditional capital structure models against the alternative of a pecking order model of corporate financing. The basic pecking order model, which predicts external debt financing driven by the internal financial deficit, has much greater timeseries explanatory power than a static t ..."
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Cited by 321 (0 self)
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tradeoff model, which predicts that each firm adjusts gradually toward an optimal debt ratio. We show that our tests have the power to reject the pecking order against alternative tradeoff hypotheses. The statistical power of some usual tests of the tradeoff model is virtually nil. � 1999 Elsevier Science
Optimal Taxation without State-Contingent Debt
, 1996
"... To recover a version of Barro's (1979) `random walk' tax smoothing outcome, we modify Lucas and Stokey's (1983) economy to permit only risk-free debt. This imparts near unit root like behavior to government debt, independently of the government expenditure process, a realistic outcome ..."
Abstract
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Cited by 201 (20 self)
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To recover a version of Barro's (1979) `random walk' tax smoothing outcome, we modify Lucas and Stokey's (1983) economy to permit only risk-free debt. This imparts near unit root like behavior to government debt, independently of the government expenditure process, a realistic
Optimal fiscal and monetary policy under sticky prices.
- Journal of Economic Theory
, 2004
"... Abstract This paper studies optimal fiscal and monetary policy under sticky product prices. The theoretical framework is a stochastic production economy without capital. The government finances an exogenous stream of purchases by levying distortionary income taxes, printing money, and issuing one-p ..."
Abstract
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Cited by 226 (13 self)
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by the Ramsey allocation when prices are flexible. The finding is in line with a recent body of work on optimal monetary policy under nominal rigidities that ignores the role of optimal fiscal policy. Second, even small deviations from full price flexibility induce near random walk behavior in government debt
Results 1 - 10
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