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Quarterly Journal of Economics Vol. 84 No. 3 1970

Corporate Financial Theory Under Uncertainty

Vernon L. Smith

University of Massachusetts

Abstract

I. Debt versus equity financing, 452: Investor portfolio choice, 454; Fundamental leverage theorem, 456; Leverage as an externality 456; Effect of no default risk: the “homemade leverage theorem,” 457; Corporate management and the capital markets, 458; Corporate capital budgets as a “public good,” 460. — II. The corporate investor: long-, margin-, and short-risk positions, 462. — Appendix: option financing, 467.

DOI
10.2307/1879429
Volume
84
Issue
3
Pages
451
Sources
openalex crossref

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