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Equilibrium with Debt and Equity Financing of New Projects: Why More Equity Financing Occurs When Stock Prices are High
dc.contributor.authorBagnoli, Marken_US
dc.contributor.authorKhanna, Naveenen_US
dc.date.accessioned2013-11-14T23:20:47Z
dc.date.available2013-11-14T23:20:47Z
dc.date.issued1987-06en_US
dc.identifier.otherMichU DeptE CenREST W87-11en_US
dc.identifier.otherG320en_US
dc.identifier.otherG310en_US
dc.identifier.urihttps://hdl.handle.net/2027.42/100720
dc.description.abstractIn this paper we analyze the manager's financing decision for a new project. We give the manager a choice between financing with debt or equity, or foregoing the project. Our purpose is to provide a signaling model in which debt, equity and foregoing are actually observed in the unique equilibrium and the financing mode provides information to the investors about the quality of the new project to be financed.en_US
dc.description.sponsorshipCenter for Research on Economic and Social Theory, Department of Economics, University of Michiganen_US
dc.relation.ispartofseriesCREST Working Paperen_US
dc.subjectDebt and Equity Financingen_US
dc.subjectFinancing Decisionsen_US
dc.subject.otherCapital Budgetingen_US
dc.subject.otherFixed Investment and Inventory Studiesen_US
dc.subject.otherFinancing Policyen_US
dc.subject.otherFinancial Risk and Risk Managementen_US
dc.subject.otherCapital and Ownership Structureen_US
dc.subject.otherValue of Firmsen_US
dc.titleEquilibrium with Debt and Equity Financing of New Projects: Why More Equity Financing Occurs When Stock Prices are Highen_US
dc.typeWorking Paperen_US
dc.subject.hlbsecondlevelEconomicsen_US
dc.subject.hlbtoplevelSocial Sciencesen_US
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/100720/1/ECON018.pdf
dc.owningcollnameEconomics, Department of - Working Papers Series


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