| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP16968 |
| DP16968 Capital Structure and Hedging Demand with Incomplete Markets | |
| Alberto Bisin; Gian Luca Clementi; Piero Gottardi | |
| 发表日期 | 2022-01-30 |
| 出版年 | 2022 |
| 语种 | 英语 |
| 摘要 | In this paper we study the role played by hedging demand in shaping firms' capital structure. We develop and study a general equilibrium model with production and incomplete markets where households differ in their risk-sharing needs. Value-maximizing firms cater to these different needs when choosing their leverage, their size, and possibly the risk profile of their production technology. We find that as the demand for hedging increases, firms issue more debt and destine only part of the greater proceeds to investment - the remainder going to shareholders. How much more debt, depends on the availability of competing risk-sharing instruments, such as (government-issued) risk-free debt and derivatives. When the capital structure is jointly shaped by hedging demand and agency - in the form of an asset-substitution problem - the greater risk induced by asymmetric information has countervailing effects on debt: on the one hand, debt is reduced to nudge shareholders into choosing lower risk. This is the standard asset substitution effect. On the other hand, however, the greater risk in production affects the state prices and calls for more debt. |
| 主题 | Financial Economics ; International Macroeconomics and Finance ; Macroeconomics and Growth ; Organizational Economics |
| 关键词 | Capital structure Leverage Incomplete markets Hedging demand Agency |
| URL | https://cepr.org/publications/dp16968 |
| 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/545912 |
| 推荐引用方式 GB/T 7714 | Alberto Bisin,Gian Luca Clementi,Piero Gottardi. DP16968 Capital Structure and Hedging Demand with Incomplete Markets. 2022. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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