Publication Type:
journal articles

Publication Year:
1992

Publication Bibliography:

Bankruptcy, Warranties and the Firm's Capital Structure
International Economic Review , 1992, 33(2), pp.399-412.
Abstract: This paper examines the role of capital structure as an instrument for shifting risk between real and financial markets. The author considers a firm whose contractual agreements involve both consumers and debtholders and shows that if consumers are risk averse, whereas equity and debtholders are risk neutral, the firm uses its capital structure to shift risk away from consumers. The optimal allocation of risk across real and financial markets leads the firm to be fully equity financed.
[go to paper]

Publication Reference Link:

Break down of publication data into fields

Publication Title:

Author Name:

Co-Author Name(s):

c
d

Conference Title:

Report Title:

Title of Paper:

Chapter Title:

Title of Journal:

Title of Book:

Conference Name:

City and Province/State/Country:

Editor's Name (if different from Author's Name):

Volume and Issue:

ISBN/Catalogue No:

Publisher:

City:

Page Number(s):

Publication Type:

Publication Category: