On the interaction between the investment and financing decision: An extension and empirical test of the Williamson specificity hypothesis.
This dissertation has a twofold objective: to extend the Williamson asset specificity hypothesis and to empirically test both the asset specificity hypothesis and the extension. The Williamson asset specificity hypothesis asserts that the financial leverage used by firms is a function of the specificity of the assets owned by the firm when asset specificity is defined as the readiness with which assets can be re-deployed. This results from a governance argument whereby highly specific assets can only be governed by increased equity participation. This argument is extended with the assertion that increased specificity causes operating leverage to rise and that firms counter this increased operating leverage by decreasing the financial leverage they employ.
Authors: | Cushing, Woodrow Wilson |
---|---|
Institutions: | Florida Atlantic University |
Subject: | Finance | Theory |
Saved in:
Online Resource
Saved in favorites
Similar items by subject
-
The consistency principle in relation to the WACC model
Chen, Jianguo, (2020)
-
Entrepreneurial Activity, Banking and Finance, Historical Aspects and Theoretical Suggestions
Dahmén, Erik, (1989)
-
Equilibrium, efficient-markets, and liquidity in the cash-in-advance model
Arroyo, Cristino Rodriguez, (1991)
- More ...
Similar items by person