Firms Contracts and Financial Structure

This book provides a framework for thinking about economic instiutions such as firms.

Firms  Contracts  and Financial Structure

Author: Oliver Hart

Publisher: Clarendon Press

ISBN: 019160688X

Page: 240

View: 123

This book provides a framework for thinking about economic instiutions such as firms. The basic idea is that institutions arise in situations where people write incomplete contracts and where the allocation of power or control is therefore important. Power and control are not standard concepts in economic theory. The book begins by pointing out that traditional approaches cannot explain on the one hand why all transactions do not take place in one huge firm and on the other hand why firms matter at all. An incomplete contracting or property rights approach is then developed. It is argued that this approach can throw light on the boundaries of firms and on the meaning of asset ownership. In the remainder of the book, incomplete contacting ideas are applied to understand firms' financial decisions, in particular, the nature of debt and equity (why equity has votes and creditors have foreclosure rights); the capital structure decisions of public companies; optimal bankruptcy procedure; and the allocation of voting rights across a company's shares. The book is written in a fairly non-technical style and includes many examples. It is aimed at advanced undergraduate and graduate students, academic and business economists, and lawyers as well as those with an interest in corporate finance, privatization and regulation, and transitional issues in Eastern Europe, the former Soviet Union, and China. Little background knowledge is required, since the concepts are developed as the book progresses and the existing literature is fully reviewed.

Cryptoassets

1165 (2001); Aurelio Gurrea-Martínez, The Impact of the Tax Benefits of Debt in
the Capital Structure of Firms and the ... Firms, Contracts, and Financial Structure
(1995); Oliver Hart & John Moore, Property Rights and the Nature of the Firm, ...

Cryptoassets

Author: Chris Brummer

Publisher: Oxford University Press, USA

ISBN: 019007731X

Page: 456

View: 602

Cryptoassets represent one of the most high profile financial products in the world, and fastest growing financial products in history. From Bitcoin, Etherium and Ripple's XRP-so called "utility tokens" used to access financial services-to initial coin offerings that in 2017 rivalled venture capital in money raised for startups, with an estimated $5.6 billion (USD) raised worldwide across 435 ICOs. All the while, technologists have hailed the underlying blockchain technology for these assets as potentially game changing applications for financial payments and record-keeping. At the same time, cryptoassets have produced considerable controversy. Many have turned out to be lacklustre investments for investors. Others, especially ICOs, have also attracted noticeable fraud, failing firms, and alarming lapses in information-sharing with investors. Consequently, many commentators around the world have pressed that ICO tokens be considered securities, and that concomitant registration and disclosure requirements attach to their sales to the public. This volume assembles an impressive group of scholars, businesspersons and regulators to collectively write on cryptoassets. This volume represents perspectives from across the regulatory ecosystem, and includes technologists, venture capitalists, scholars, and practitioners in securities law and central banking.

Capital Structure and Firm Performance

Hart, O., 1995, Firms, Contracts and Capital Structure, Oxford: Oxford University
Press. Jensen, M.C., and William H. Meckling, 1976, “Theory of the Firm:
Managerial Behavior, Agency Costs and Ownership Structure,” Journal of
Financial ...

Capital Structure and Firm Performance

Author: Arvin Ghosh

Publisher: Routledge

ISBN: 135153016X

Page: 140

View: 174

Capital structure theory is one of the most dynamic areas of finance and forms the basis for modern thinking on the capital structure of firms. Much controversy has resulted from comparisons of the theory of capital structure originally developed by Franco Modigliani and Merton Miller to real-world situations. Two competing theories have emerged over the years, the optimal capital structure theory and the pecking order theory.Arvin Ghosh begins with an overview of the controversies regarding capital structure theories, and then statistically tests both the optimal capital structure and pecking order theories. Using the binomial approach he analyzes the determinants of capital structure while discussing the role of market power in determining capital structure decisions. Ghosh probes the questions of new stock offerings and stockholders' returns, and analyzes capital structure and executive compensation. He then looks into debt financing ownership structure, and the controversal relationship between capital structure and firm profitability. Finally, he discusses the latest developments in the field of capital structure.A concise overview of a major issue in business economics and finance, this volume provides a fuller understanding of capital structure influence on the financial performance of firms, and will certainly stimulate further debate. While hundreds of scholarly articles have been written on the subject this is the first book to test competing theories against measurements of firms' performance and their underlying capital structure.

Finance

To avoid technology substitution , each capital intensive firm must issue debt
obligations with a higher face value than a ... Financial structure and implicit
contracts In many cases it is advantageous for firms to enter either explicit or
implicit ...

Finance

Author: R.A. Jarrow

Publisher: Elsevier

ISBN: 9780444890849

Page: 1165

View: 866

Hardbound. The Handbook of Finance is a primary reference work for financial economics and financial modeling students, faculty and practitioners. The expository treatments are suitable for masters and PhD students, with discussions leading from first principles to current research, with reference to important research works in the area. The Handbook is intended to be a synopsis of the current state of various aspects of the theory of financial economics and its application to important financial problems. The coverage consists of thirty-three chapters written by leading experts in the field. The contributions are in two broad categories: capital markets and corporate finance.

Start up Firms

Moral hazard and capital structure dynamics . Discussion paper , CEPR 2002 .
Diamond , D. ( 1993 ) . Seniority and maturity of debt contracts . Journal of
Financial Economics , 33 , 341-368 . Dixit , A. K. and Pindyck , R. S. ( 1993 ) .
Investment ...

Start up Firms

Author: Vijay Yerramilli

Publisher:

ISBN:

Page: 222

View: 533

Capital Structure Decisions of a Public Company

658152 Hg52c Capital Structure Decisions of a Public Company by Oliver Hart ( *
) Abstract This paper develops a theory of the ... forthcoming book , Firms ,
Contracts and Financial Structure , to be published by Oxford University Press .

Capital Structure Decisions of a Public Company

Author: Oliver D. Hart

Publisher: University of British Columbia, Department of Economics

ISBN:

Page: 46

View: 384

Michigan Law Review

Hart describes a simple twoperiod situation where the firm is founded at t = 0 and
liquidated at t = 2 , with an intermediate ... OLIVER HART , FIRMS , CONTRACTS
, AND FINANCIAL STRUCTURE 146-48 ( 1995 ) ; see also Anat R. Admati ...

Michigan Law Review

Author:

Publisher:

ISBN:

Page:

View: 941

Liquidation Values and the Credibility of Financial Contract Renegotiation

References Aghion , Philippe , and Patrick Bolton , “ An Incomplete Contracts
Approach to Financial Contracting , " Review of Economic Studies 59 ... Hart ,
Oliver , “ Firms , Contracts , and Financial Structure , ” Oxford University Press ,
1995 .

Liquidation Values and the Credibility of Financial Contract Renegotiation

Author: Efraim Benmelech

Publisher:

ISBN:

Page: 38

View: 187

How do liquidation values affect financial contract renegotiation? While the 'incomplete contracting' theory of financial contracting predicts that liquidation values determine the allocation of bargaining power between creditors and debtors, there is little empirical evidence on financial contract renegotiations and the role asset values play in such bargaining. This paper attempts to fill this gap. We develop an incomplete-contracting model of financial contract renegotiation and estimate it using data on the airline industry in the United States. We find that airlines successfully renegotiate their lease obligations downwards when their financial position is sufficiently poor and when the liquidation value of their fleet is low. Our results show that strategic renegotiation is common in the airline industry. Moreover, the results emphasize the importance of the incomplete contracting perspective to real world financial contract renegotiation.

The Modern Firm

“Incentive Contracts with Dispute Costs.” Stanford, CA: Stanford ... “Nokia
Corporation: Innovation and Efficiency in a High-Growth Global Firm.” Stanford,
CA: Stanford ... Firms, Contracts, and Financial Structure. Oxford: Clarendon
Press. Hart ...

The Modern Firm

Author: John Roberts

Publisher: OUP Oxford

ISBN: 019162246X

Page: 336

View: 286

Business firms around the world are experimenting with new organizational designs, changing their formal architectures, their routines and processes, and their corporate cultures as they seek to improve their current performance and their growth prospects. In the process they are changing the scope of their business operations, redrawing their organization charts, redefining the allocation of decision-making authority and responsibility, revamping the mechanisms for motivating and rewarding people, reconsidering which activities to conduct in-house and which to out-source, redesigning their information systems, and seeking to alter the shared beliefs, values and norms that their people hold. In this book, John Roberts argues that there are predictable, necessary relationships among these changes that will improve performance and growth. The organizations that are successful will establish patterns of fit among the elements of their organizational designs, their competitive strategies and the external environment in which they operate and will go about this in a holistic manner. The Modern Firm develops powerful conceptual frameworks for analyzing the interrelations between organizational design features, competitive strategy and the business environment. Written in a non-technical language, the book is nevertheless based on rigorous modeling and draws on numerous examples from eighteenth century fur trading companies to such modern firms such as BP and Nokia. Finally the book explores why these developments are happening now, pointing to the increase in global competition and changes in technology. Written by one of the world's leading economists and experts on business strategy and organization, The Modern Firm provides new insights into the changes going on in business today and will be of interest to academics, students and managers alike.

The Oxford Handbook of Human Capital

'Ronald Coase on the Nature of Social Cost as a Key to the Problem of the Firm',
Scandinavian Journal of Economics, 94:19–31. Becker, G. (1964). ... Firms,
Contracts, and Financial Structure (Oxford: Oxford University Press). Heath, C.,
Knez ...

The Oxford Handbook of Human Capital

Author: Alan Burton-Jones

Publisher: OUP Oxford

ISBN: 0191634964

Page: 718

View: 301

Macroeconomic research on human capital - the stock of human capabilities and knowledge - has been extensively published but to date the literature has lacked a comprehensive analysis of human capital within the organization. The Oxford Handbook of Human Capital has been designed to fill that gap, providing an authoritative, inter-disciplinary, and up to date survey of relevant concepts, research areas, and applications. Specially commissioned contributions from over 40 authors reveal the importance of human capital for contemporary organizations, exploring its conceptual underpinnings, relevance to theories of the firm, implications for organizational effectiveness, interdependencies with other resources, and role in the future economy. Unlike neoclassical macroeconomic concepts of human capital, human capital in organizations is shown to be dynamic and heterogeneous, requiring new theories and management frameworks. The systemic role of human capital is explored, revealing it as the lynchpin of social, structural and other forms of intangible and tangible capital. Connections between human capital and organizational performance are investigated from HR management, procurement, alignment, value appropriation, and accounting perspectives. Links between micro and macro perspectives are provided through analyses of inter firm human capital mobility, national and regional human capital formation regimes and industry employment relations practices. This Handbook is designed for scholars and graduate students of organization and management theory, strategy, entrepreneurship, knowledge and intellectual capital, accounting, IT, HR, IR, economic sociology and cultural studies. For policy makers and practitioners it should provide an up to date guide to the nature and role of human capital in contemporary organizations and the roles that government, industry and other extra firm institutions can play in facilitating its development.

Venture Capital Meets Contract Theory

( 21 ) Hart , 0 . ( 1995 ) , Firms , Contracts and Financial Structure , Oxford : Oxford
University Press . ( 22 ) Hellmann , T . ( 1998 ) , “ The Allocation of Control Rights
in Venture Capital Contracts ” , Rand Journal of Economics , 29 : 57 - 76 .

Venture Capital Meets Contract Theory

Author: Giacinta Cestone

Publisher:

ISBN:

Page: 35

View: 507

Bargaining Power Effects in Financial Contracting

Since financial contracting is quite a broad field of research, see, e. g., Hart (2001
) for a recent review, we focus on the in ... of financial contracting where firm's
capital structure is used as a bargaining device, i. e. the firm's capital structure is
 ...

Bargaining Power Effects in Financial Contracting

Author: Kai Rudolph

Publisher: Springer Science & Business Media

ISBN: 3540344969

Page: 342

View: 150

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 firm’s risky project, the author illustrates and analyzes the importance of bargaining power on finance decisions.

The American Economic Review

If one adopts Williamson ' s logic and thinks about firms as organizational
arrangements that reduced opportunities for holdup , then the Corliss example
suggests that it is not very useful to think ... Firms , contracts , and financial
structure .

The American Economic Review

Author:

Publisher:

ISBN:

Page:

View: 760

Includes papers and proceedings of the annual meeting of the American Economic Association. Covers all areas of economic research.