Optimal Financial Instruments Journal Article

Overview

abstract

• ABSTRACTDebt and equity are developed as optimal financial instruments in a model where cash flows and control rights are allocated to investors endogenously. When investment decisions must be made by a single party, the debtholder's cash flows are fixed in order to provide the equityholder with efficient incentives for investment. Ownership of control may be transferred to the debtholder to attenuate the impact of asymmetric information, concerning the investment opportunity, on the efficiency of the decision making.

CU Boulder Authors

• Zender, Jaime F.

publication date

• December 1, 1991

has restriction

• closed

Date in CU Experts

• June 26, 2014 3:58 AM

Full Author List

• ZENDER JF

author count

• 1

published in

• The Journal of Finance  Journal

Other Profiles

International Standard Serial Number (ISSN)

• 0022-1082

Electronic International Standard Serial Number (EISSN)

• 1540-6261

Digital Object Identifier (DOI)

• https://doi.org/10.1111/j.1540-6261.1991.tb04638.x

Additional Document Info

start page

• 1645

end page

• 1663

volume

• 46

issue

• 5