Dynamic investment and capital structure under manager–shareholder conflict

Investment timing under debt issuance constraint

“…We have simplified their problem by removing debt renegotiation. Thus, our problem builds on the simple version of Sundaresan and Wang (2007) without debt renegotiation, which also corresponds to the no-agency problem with debt financing in Shibata and Nishihara (2010). E a ðX t ; cÞ :¼ max…”

“…This problem corresponds to the no-agency problem with all-equity financing inShibata and Nishihara (2010).7 This problem is also exactly the same as in the no-agency problem with debt financing inShibata and Nishihara (2010).…”

Effect of Disagreement on Corporate Financing Policy and Investment Level

“…BenDavid et al (2007) find that firms with over-confident CFOs tend to adopt lower return investment projects, pay dividends less often, and repurchase stock more frequently than do other firms. Shibata and Nishihara (2010) show that manager-shareholder conflicts over-investment policy increase not only the investment and default triggers but also coupon payments, which lead to a decrease in the equity value; while debt financing increases investment and decreases total social welfare; thus, there is a trade-off between the efficiency of investment and total social welfare with debt financing. Smith (2014) supports the hypothesis that low disagreement followed by high investment.…”

A interdependência das decisões empresariais de investimento e endividamento na América Latina

“…Essa perspectiva independente teve origem nos trabalhos seminais de Modigliani e Miller (MM) (MODIGLIANI;MILLER, 1958;MODIGLIANI;MILLER, 1963). No entanto, estudos posteriores sugerem para a existência de uma interdependência entre as decisões de investimento e endividamento das firmas com novas proposições teóricas e, com efeito, despertaram interesse em profissionais de mercado que desenvolvem estratégias financeiras (FAZZARI; HUBBARD;PETERSEN, 1988;KAPLAN;WHITED, 1992;TRIANTIS, 1994;KAPLAN;ZINGALES, 1997;SHIBATA;NICHIHARA, 2010).…”