Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/173658
Authors: 
Stübinger, Johannes
Year of Publication: 
2018
Series/Report no.: 
FAU Discussion Papers in Economics 01/2018
Abstract: 
A considerable theoretical and empirical literature studies the corporation's capital structure. Economists have paid less attention to capital structure in other enterprise forms such as partnerships, which typically operate under different legal constraints and appeal to smaller enterprises. Yet partnerships were the dominant business organization for the period in which wealthy countries first experienced long-run economic growth, and they remain quantitatively significant in some important economies today. We use a series of simple models to study several aspects of the partnership's choice of capital structure. We show that common features of partnerships reflect the difficulty of raising capital for ventures whose prospects are hard to judge. We also consider the implications of a rule in partnership law that prevents limited partners from playing a role in management, and the implications of the partnership form for projects subject to hold-up.
Subjects: 
finance
optimal causal path
statistical arbitrage
lead-lag structure
high-frequency trading
cryptocurrency
JEL: 
C1
C5
C6
G1
G12
Document Type: 
Working Paper
Social Media Mentions:

Files in This Item:
File
Size
948.22 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.