Series: IMF Working Papers
Author(s): Jorge Chan-Lau
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 December 2001
Keywords: agency cost of debt, exit decision, shareholders, equation, shareholder, corporate governance structures, Corporate Finance And Governance,
This paper uses a stochastic continuous time model of the firm to study how different corporate governance structures affect the agency cost of debt. In the absence of asymmetric information, it shows that control...