This study examines the effect of the hardening of the budget constraint on the investment behaviour of Italian state owned enterprises (SOEs). It carries out a natural experiment that exploits the 1987 shift of budget regimes due to the pressure of European Union economic policies on the...

Ein Unterinvestitionsproblem entsteht, wenn eine Ergänzungsinvestition mit positivem Kapitalwert nur den Marktwert des Fremdkapitals, nicht aber den des Eigenkapitals erhöht. Ein Ausweg könnte aber in der Verlagerung der Ergänzungsinvestition und möglicherweise noch weiterer Projekte auf...

We examine the cash-flow sensitivities of firms" simultaneous choice of investment, liquidity, dividends and net debt respectively equity financing in a large sample of US corporates between 1971 and 2016. We differentiate firms according to their (external) financial constraints and their...

Interne Kapitalmärkte in niederländischen Unternehmen Unter Verwendung von Daten auf Segmentebene für den Zeitraum 1995-1998 untersuchen wir die Präsenz von internen Kapitalmärkten. Wir gelangen zu folgenden Schlußfolgerungen: Erstens haben wir für diversifizierte Unternehmensgruppen...

Wann lohnt Leasing für den Leasingnehmer? Der Beitrag diskutiert und erweitert Kalküle zur Prüfung der Vorteilhaftigkeit von Leasingverträgen aus Sicht des Leasingnehmers. Der Standardansatz der Literatur wird hinterfragt und modifiziert auf das deutsche Steuersystem übertragen. Deutlich...

This paper investigates the impact of firm leverage on its investment activities. Especially, the research is conducted in the context of the Vietnamese emerging market, an incomplete market in South East Asia with the existence of inefficient market problems such as information asymmetry and...

A number of indicators can be assessed for a company's financial health, with indebtedness indicators being one of the important ones. The formation of the financial structure is influenced by a huge number of factors. The subject of this research is the indebtedness of companies in the...

This paper is concerned with the valuation and analysis of default-risky debt instruments with arbitrary interest and principal payments. For the valuation, we use three nested multivariate extensions of the standard Merton (1974) model for pricing risky zero-coupon bonds. First, we present a...

This paper examines the dynamic relationship between firm leverage and risktaking. We embed the traditional agency problem of asset substitution within a multi-period model, revealing a U-shaped relationship between leverage and risktaking, evident in data from both the U.S. and Europe. Firms...

An underinvestment problem arises if an additional investment project with positive net presentvalue increases only the market value of debt, but not of equity. As a way out the shift ofthe additional investment project and possibly also other projects to a subsidiary is considered.From the...