The Determination of Financial Structure: The Incentive-Signalling Approach

Stephen A. Ross
The Bell Journal of Economics

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excerpt Assumption 1: Manager-insiders are identified with firms as possessors of inside information. Furthermore, refinancing by outsiders conveys no information to the market. on 8/15/2019, 1:37:31 AM

excerpt Manager-insiders are compensated by a known incentive schedule, i.e., a given rule which investors know. on 8/15/2019, 1:37:46 AM

references Modigliani–Miller theorem on 8/15/2019, 1:45:12 AM


Why Do Companies Pay Dividends? cites The Determination of Financial Structure: The Incentive-Signalling Approach on 8/15/2019, 1:36:56 AM