Aghion, Philippe; Dewatripont, Mathias; Rey, Patrick - European Science Foundation Network in Financial … - 1990
versus equity. Models where capital structure matters have focused either on the incentive approach, where agency problems … equity. These approaches have left open the question of the coexistence of debt and equity in a world where optimal financial … complementarity between debt and equity can be explained as follows: equity will be useful as a way to favour value …