The conclusions of Hirshleifer (1971) concerning the private and social value of information in a pure exchange economy are examined. We agree that in the impersonal and competitive market of Hirshleifer, the production of new private information has private value and the production of new...

The basic theoretical relationships between the value of the firm and leverage were set forth by Modigliani and Miller (MM). Much work has tested the MM relationships empirically, including studies which used data from regulated industries. Gordon has stated that, because earnings before...