Showing 1 - 10 of 68
This article is the first to analyze the simultaneous choice of investment and organizational form using the behavioral … finance approach. When entrepreneurs are rational, the choice of investment and organizational form is irrelevant in most …
Persistent link: https://www.econbiz.de/10012867929
This note provides an explanation for why tax rates on capital gains are usually lower than ordinary income tax rates based on manager's agency problem related to "empire-building" and the underinvestment problem
Persistent link: https://www.econbiz.de/10014199048
This note provides an explanation for why tax rates on capital gains are usually lower than ordinary income tax rates based on manager's agency problem related to "empire-building" and the underinvestment problem
Persistent link: https://www.econbiz.de/10014199050
Crowdfunding has mostly been used to finance very unique projects. Recently, however, companies have begun using it to finance more traditional products where they compete against other sellers of similar products. Major crowdfunding platforms, Kickstarter and Indiegogo, as well as Amazon have...
Persistent link: https://www.econbiz.de/10012611282
We build a model of debt for firms with investment projects, for which flexibility and free cash flow problems are … explain why the probability of selecting the zero-debt policy is positively correlated with profitability and investment size …
Persistent link: https://www.econbiz.de/10012611523
This paper considers a financing problem for an innovative firm that is launching a web-based platform. The entrepreneur, on one hand, faces a large degree of demand uncertainty on his product and on the other hand has to deal with incentive problems of professional blockchain participants who...
Persistent link: https://www.econbiz.de/10012611789
According to Graham and Harvey (2001), an immense gap exists between capital structure theories and practice. By analyzing students' perception of capital structure theories and the differences between their opinion and that of the current CEO's and managers this paper argues that this can be...
Persistent link: https://www.econbiz.de/10013082034
According to Graham and Harvey (2001), an immense gap exists between capital structure theories and practice. By analyzing students' perception of capital structure theories and the differences between their opinion and that of the current CEO's and managers this paper argues that this can be...
Persistent link: https://www.econbiz.de/10013082035
This paper shows that asymmetric information about the timing of earnings can affect corporate capital structure. It sheds new light on the following issues: why profitable firms may be interested in issuing equity and why debt does not necessarily signal a firm's quality. These issues seem to...
Persistent link: https://www.econbiz.de/10012964505
This article presents a new capital structure model based on four factors well documented in literature: asymmetric information, taxes, bankruptcy costs and decision-makers' overconfidence. The model can simultaneously explain several facts about capital structure including those that remain...
Persistent link: https://www.econbiz.de/10012838567