Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/168226
Authors: 
Flore, Raphael
Year of Publication: 
2017
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Financial Regulation II B16-V2
Abstract: 
Arguments for costs of capital requirements in the long run are based on trade-off theories of capital structure. This paper provides a critical assessment of these theories by studying how the optimal capital structure can be modified, when a firm uses the financial markets to alter its cash flow distribution. I show that, for any initial set of assets, the implementation of a certain fund structure allows the firm to reduce its leverage and its bankruptcy probability without a loss of value.
JEL: 
G32
G30
G28
G10
Document Type: 
Conference Paper
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