firm’s credit risk is low, management issues public bonds because of the value gains from increased flexibility rather than … reduced restrictions and monitoring. In fact, management’s expected private gains decrease as initial private debt … restrictions are selectively relaxed. In contrast, when credit risk is high, management issues private debt because of the value …

play an important role in diminishing conflicts between shareholders and debtholders …

developing countries. This paper develops a theory of family business that brings market forces and the family, as a nonmarket …