Lecture Notes in Economics and Mathematical Systems
1 primary work
Book 577
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.