The relationship between ownership, financing decisions and firm performance:a signaling model

Bajaj, Mukesh and Chan, Yuk-Shee and Dasgupta, Sudipto (1998) The relationship between ownership, financing decisions and firm performance:a signaling model. International Economic Review, 39 (3). pp. 723-744. ISSN 0020-6598

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Abstract

We develop a signaling model to show how adverse selection and moral hazard interact to determine a firm's ownership structure and financing and investment decisions endogenously. Testable implications are derived regarding the relationship between insider ownership, performance measures such as Tobin's Q ratio, and elements of financial structure such as the debt-equity ratio.

Item Type:
Journal Article
Journal or Publication Title:
International Economic Review
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/2000/2002
Subjects:
ID Code:
74567
Deposited By:
Deposited On:
07 Jul 2015 23:02
Refereed?:
Yes
Published?:
Published
Last Modified:
01 Jan 2020 09:17