We propose a restructuring of U. S. Federal debt. All debt should be perpetual, paying coupons forever with no principal. The debt should be composed of the following: 1) Fixedvalue, floating-rate, electronically transferable debt. Such debt looks like a money-market fund, or reserves at the Fed, to an investor. 2) Nominal perpetuities. This debt pays a coupon of $1 per bond, forever. 3) Indexe...

In the past few years, there have been several new developments in the way real estate investment trusts (REITs) access capital. There has been an increasing trend toward the use of unsecured debt, and REITs may also alter their dividend policy in order to generate capital internally to the extent they can. There has been little empirical research into the market's reaction to unsecured debt an...

This paper analyzes the relationship between capital structure and earning management. For analysing we used 119 non-financial companies that listed in Tehran Stock Exchange from 2000 to 2008. The researchers will focus on comparing the Jones Model and the Modified Jones Model, which are the two most frequently used model in empirical analysis nowadays. Earnings management is a kind of manageme...

This paper analyzes the relationship between capital structure and earning management. For analyzing we use 119 non-financial companies that listed in Tehran Stock Exchange from 2000 to 2008. The researchers will focus on comparing the Jones Model and the Modified Jones Model, which are the two most frequently used model in empirical analysis nowadays. Earnings management is a kind of managemen...

for their advice on an earlier version where a static model was developed. Abstract This paper develops a model in which an optimal capital structure and an optimal debt maturity are jointly determined in a stochastic interest rate environment. Valuation formulas are derived in closed form and numerical solutions are used to obtain comparative statics. The model yields leverage ratios and debt ...

We examine the impact of explicitly incorporating a measure of debt capacity in recent tests of competing theories of capital structure. Our main results are that if external funds are required, in the absence of debt capacity concerns, debt appears to be preferred to equity. Concerns over debt capacity largely explain the use of new external equity financing by publicly traded firms. Finally, ...

A contingent claims model with differential beliefs between debt and equity holders about the asset’s growth rate and volatility is used to study the impact of differential information between debt and equity holders on firm value, optimal capital structure, the timing of investment and other variables such as the credit spreads. The model explains the existence of debt constraints when debt ho...

Debt management policy for governments of developing countries must balance conflicting objectives. The structure of explicit and implicit government debt influences the amount of lending private creditors are willing to extend, contractual debt service costs, the probability of default and the costs of default. Because default is not relevant for governments of industrial countries, their debt...