Journal of Finance Vol. 39 No. 3 1984
Contingent Claims Analysis of Corporate Capital Structures: an Empirical Investigation
Abstract
Analysis is consistent with the approach of Fisher (1959) in that the model's inputs can be viewed as measures of financial and business risk. The advantage of CCA over the regression based analysis of Fisher (1959) is that CCA provides a specific functional relationship to be tested. In addition, given the structure of the CCA model, it is straightforward to infer firm values or other security values from the values of traded claims, and to price different convenant structures separately. In Section 2 of the paper, a brief discussion of the CCA valuation problem for a firm with equity and multiple issues of callable non-covertible sinking fund
- DOI
- 10.1111/j.1540-6261.1984.tb03649.x
- Volume
- 39
- Issue
- 3
- Pages
- 611-625
- Language
- en
- Sources
- openalex crossref semanticscholar