全球智库信息集成服务系统(G2TT): DP4165 On Model Selection and Markov Switching: A Empirical Examination of Term Structure Models with Regime Shifts

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP4165
	DP4165 On Model Selection and Markov Switching: A Empirical Examination of Term Structure Models with Regime Shifts
	John Driffill; Martin Sola; Turalay Kenc; Fabio Spagnolo
发表日期	2004-01-23
出版年	2004
语种	英语
摘要	Firms that are more highly levered are forced to raise capital more often, a process that leads to the generation of information. Of course, transparency can improve the allocation of capital. When the information about the firm affects the terms under which the firm transacts with its customers and employees, however, transparency can have an offsetting negative effect. Under relatively general conditions, good news improves these terms of trade less than bad news worsens them, implying that increased transparency can lower firm value. In addition, we show that transparency can reduce the incentives of firms and stakeholders to undertake relationship-specific investments, can lead firms to pass up positive NPV investments that require external funding, and can lead firms to choose more conservative capital structures than they would otherwise choose. These effects are likely to be especially important for technology firms that require a reputation for being on the ?leading edge?.
主题	Financial Economics
关键词	Equity issuance Under-investment Market scrutiny Dynamic capital structure
URL	https://cepr.org/publications/dp4165
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/533139
推荐引用方式 GB/T 7714	John Driffill,Martin Sola,Turalay Kenc,et al. DP4165 On Model Selection and Markov Switching: A Empirical Examination of Term Structure Models with Regime Shifts. 2004.