Title: An extension of a model of financial contracts and labor contracts
Abstract: Using an artiele by Garvey and Swan (GS) 1992 as a benchmark, we extend their model to deal with the issue of the optimal financial structure for a firm when the interaction between labor and fmancial contracts is considered. The GS artiele coneludes that debt financing is Pareto superior to equity financing. We show that once we introduce a model, with more complete contracts, and sorne dynamic features, their results are no longer valido
Publication Year: 1997
Publication Date: 1997-12-01
Language: en
Type: preprint
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot