Broll, Udo; Wong, Kit Pong - Fakultät Wirtschaftswissenschaften, Technische … - 2003
introduction of the background risk affects neither the optimal debt-equity ratio nor the marginal rate of technical substitution … of the background risk induces the firm to acquire less capital by issuing less debt and equity. …. Besides output price uncertainty, the firm faces additional sources of risk which are aggregated into an additive background …