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文章基本信息

  • 标题:Stakeholders, transparency and capital structure
  • 本地全文:下载
  • 作者:Andrés Almazán ; Javier Suarez ; Sheridan Titman
  • 期刊名称:CEMFI Working Papers / Centro de Estudios Monetarios y Financieros, Madrid
  • 出版年度:2004
  • 卷号:2004
  • 出版社:Centro de Estudios Monetarios y Financieros, Madrid
  • 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. However, when the information about the firm affects the terms under which the firm transacts with its customers and employees, 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 than 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”.

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