Levati, M.; Qiu, Jianying; Mahagaonkar, Prashanth - In: Experimental Economics 15 (2012) 4, pp. 693-716
We present an experiment designed to test the Modigliani-Miller theorem. Applying a general equilibrium approach and not allowing for arbitrage among firms with different capital structures, we find that, in accordance with the theorem, participants well recognize changes in the systematic risk...