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This paper argues that the existing finance literature is inadequate with respect to its coverage of capital structure of small and medium sized enterprises (SMEs). In particular it is argued that the cost of equity (being both conceptually ill defined and empirically non quantifiable) is not...
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-contingent, the maturity structure is irrelevant for tax smoothing and thus indeterminate. Are we left with no theory for the optimal …. This in turn provides us with a novel theory for the optimal maturity structure of public debt … theory as irrelevant as it is silent about fiscal policy with non-contingent debt? Second, when debt is assumed state …
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We study the relationship between default and the maturity structure of the debt portfolio of a Sovereign, under …
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