Opis: Corporate Policies in a World with Information Asymmetry - Ramesh Rao, Vipin Agrawal

To raise the necessary capital to finance the initial investment for the firm, a manager must enter into a transaction with outside investors to raise the additional funds. In this situation, the manager of a public corporation faces three key capital acquisition decisions: The investment decision: Should the manager transact with outside investors and raise the necessary capital to invest in the project? The financing decision: If the manager decides to raise external capital, how should the investment be financed - with debt, with equity, or with some other security? The dividend decision: How much of the firm's available cash should the manager pay out in dividends? Modern corporate finance theory, originating with the seminal work of Merton Miller and Franco Modigliani, has demonstrated that these decisions depend on the information that the manager and investors have about the firm's future cash flows. In this book, the authors examine these decisions by assuming that the manager has private information about the firm's future cash flows and provides a unified framework that explains many empirical anomalies in the literature, one that provides guidance for better empirical tests.Introduction; The Capital Acquisition Decision: Model; The Capital Acquisition Decisions under Symmetric Information; The Capital Acquisition Decisions under Information Asymmetry: Good Economy; Capital Acquisition Decisions under Information Asymmetry: Average Economy and Bad Economy; Application of the Theory when Managers can only Issue Debt and Equity; Application of the Theory to Other Security Spaces; Application of the Theory for Practitioners; Concluding Remarks and Future Research.

Szczegóły: Corporate Policies in a World with Information Asymmetry - Ramesh Rao, Vipin Agrawal

Tytuł: Corporate Policies in a World with Information Asymmetry
Autor: Ramesh Rao, Vipin Agrawal
Producent: World Scientific Publishing Co Ltd
ISBN: 9789814551304
Rok produkcji: 2015
Ilość stron: 250
Oprawa: Twarda

Recenzje: Corporate Policies in a World with Information Asymmetry - Ramesh Rao, Vipin Agrawal