Shin, Hyun-Han (contributor); Stulz, René M. (contributor) - 2000 - [Elektronische Ressource]
first-order importance.1 These theories point out that greater firm cash flow volatility hurts
shareholders since, for given … endogeneity of the firm's
capital structure. After reviewing this literature, Leland (1999) shows that shareholders may find
it … volatility that increases equity volatility affects
shareholders adversely by reducing their expected cash flows, so that there …