Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - The relationship between ownership, financing decisions and firm performance
T2 - a signaling model
AU - Bajaj, Mukesh
AU - Chan, Yuk-Shee
AU - Dasgupta, Sudipto
PY - 1998/8
Y1 - 1998/8
N2 - We develop a signaling model to show how adverse selection and moralhazard interact to determine a firm's ownership structure and financing andinvestment decisions endogenously. Testable implications are derived regardingthe relationship between insider ownership, performance measures such asTobin's Q ratio, and elements of financial structure such as the debt-equityratio.
AB - We develop a signaling model to show how adverse selection and moralhazard interact to determine a firm's ownership structure and financing andinvestment decisions endogenously. Testable implications are derived regardingthe relationship between insider ownership, performance measures such asTobin's Q ratio, and elements of financial structure such as the debt-equityratio.
U2 - 10.2307/2527397
DO - 10.2307/2527397
M3 - Journal article
VL - 39
SP - 723
EP - 744
JO - International Economic Review
JF - International Economic Review
SN - 0020-6598
IS - 3
ER -