Results 251 to 260 of about 166,090,932 (307)

Measuring the Agency Cost of Debt

The Journal of Finance, 1992
ABSTRACTWe adapt a contingent claims model of the firm to reflect the incentive effects of the capital structure and thereby to measure the agency costs of debt. An underlying model of the firm and the stochastic features of its product market are analyzed and an optimal operating policy is chosen.
Mello, Antonio S, Parsons, John E
openaire   +1 more source

The Costs of Corporate Debt Overhang

SSRN Electronic Journal, 2020
Firms with debt overhang, measured as total borrowing to cash-flow, experience 2% slower asset growth during ordinary times and up to 3% slower growth during a crisis, compared to similar firms without debt overhang. These patterns extend to a firm's growth in employment and capital expenditures.
Kristian Blickle, João A.C. Santos
openaire   +1 more source

The Cost of Debt

2001
This paper proposes a practical way of estimating the cost of risky debt for use in the cost of capital. The cost of debt is different from both the promised yield and the risk-free rate, which are sometimes used for this purpose, because of the expected probability of default. The Merton (1974) model of risky debt is employed to decompose the promised
Ian Anthony Cooper, Sergei Davydenko
openaire   +1 more source

Cost of Debt Determinant

International Conference On Research And Development (ICORAD), 2020
This study aims to analyze the cost of debt which is influenced by family ownership and institutional ownership. The total population of 193 manufacturing companies listed on the IDX in 2016 and 2020 with a sample size of 108 through purposive sampling.
Lilis Fidiyawati   +2 more
openaire   +1 more source

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