Goswami, Gautam; Noe, Thomas H; Rebello, Michael J - In: Journal of Finance 50 (1995) 2, pp. 633-59
The authors analyze the optimal design of debt maturity, coupon payments, and dividend payout restrictions under asymmetric information. They show that, if the asymmetry of information is concentrated around long-term cash flows, firms finance with coupon-bearing long-term debt that partially...