We analyze a publicly-traded firm's decision to stay public or go private when managerial autonomy from shareholder intervention affects the supply of productive inputs by management. We show that both the advantage and the disadvantage of public ownership relative to private ownership lie in...

More than fifty years ago, Modigliani and Miller proposed that, in the absence of taxes, capital structure is irrelevant in the sense that it does not affect firm value. Since then, three sets of theories (signaling, agency, and tradeoff models) have reasserted the relevance of capital...

This book, written in story narrative form, traces the development of a company from a start-up to a global enterprise. It develops the key concepts related to this evolution - corporate strategy, raising external finance, capital budgeting, dividend policy, mergers and acquisition,...

This paper examines capital budgeting and dividend policy in an environment in which firms need to raise equity financing from new investors to fund projects, and different generations of shareholders may openly disagree over what maximizes value. The standard value maximization objective is...