Bargaining Power Effects in Financial Contracting

Bargaining Power Effects in Financial Contracting

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The primary objective of this book is to demonstrate that a firm's financing decisions depend among other things on bargaining power considerations, and to illustrate potential causes for this dependency. Based on a principal-agent analysis where a lender (principal) and a firm (agent) bargain over the financing of the firma€™s risky project, the author illustrates and analyzes the importance of bargaining power on finance decisions.Since financial contracting is quite a broad field of research, see, e. g., Hart (2001 ) for a recent review, we focus on the in our opinion most interesting studies to demonstrate the different areas where bargaining aspects have been taken intoanbsp;...

Title:Bargaining Power Effects in Financial Contracting
Author:Kai Rudolph
Publisher:Springer Science & Business Media - 2006-11-17


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