Firms Choice of Public Issuance: A Structural Static Framework
The question of whether market conditions exert a unique inflence on firms choices of capital issuance (the consequence of inelastic capital supply) has risen to prominence in (corporate) finance. We estimate a (partial equilibrium) hierarchical multinomial probit model of issuancemodeling firms choices between short-term debt, long-term debt and equity. The partial equilibrium analysis is consistent with standard choice theory. Moving toward a general equilibrium interpretation the paper makes three contributions. We include the market-wide conditions and show that these affect choicenotably the term of debt; with this term choice itself comprising the papers second contribution. The third contribution is a variance decomposition that places upper bounds on the explanatory power achieved by a capital supply effect.
External financing choice Endogenous Costs Multinomial Probit
Christopher G. Lamoureux Ali Nejadmalayeri
Department of Finance, The University of Arizona, Eller College of Management, Tucson, AZ, 85721 Department of Finance, Spears School of Business, Oklahoma State University, Tulsa, OK, 74106
国际会议
成都
英文
1-46
2007-07-09（万方平台首次上网日期，不代表论文的发表时间）