Stock options and capital structure
AbstractThe empirical evidence on sources of corporate financing strongly suggests that firms prefer internally generated funds to debt and debt to equity in financing their investment activities. What is the economic rationale for this preference ordering or pecking order? We provide an explanation based on managerial compensation.
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Bibliographic InfoArticle provided by Springer in its journal Annals of Finance.
Volume (Year): 2 (2006)
Issue (Month): 1 (January)
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Web page: http://www.springerlink.com/link.asp?id=112370
Stock options; Managerial compensation; Capital structure; Pecking order theory; Convexity and risk;
Other versions of this item:
- Macminn, R.D. & Page, F.H., 2001. "Stock Options and Capital Structure," Papiers d'Economie MathÃÂ©matique et Applications 2001.36, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
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