Premium
The effect of leverage on bargaining with a corporation
Author(s) -
Sarig Oded H.
Publication year - 1998
Publication title -
financial review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.621
H-Index - 47
eISSN - 1540-6288
pISSN - 0732-8516
DOI - 10.1111/j.1540-6288.1998.tb01603.x
Subject(s) - capital structure , leverage (statistics) , shareholder , debt , corporation , business , finance , production (economics) , capital (architecture) , monetary economics , economics , microeconomics , corporate governance , archaeology , machine learning , computer science , history
This paper shows that the choice of a capital structure by a firm affects the bargaining posture of its shareholders vis‐a‐vis its suppliers of specialized production factors. The pricing of the firm's securities and the choice of a capital structure are analyzed in light of this effect of debt financing.