Through a cost-minimizing approach, this paper derives four joint indicators to assess the ef…ciency of the mix of sovereign debt currencies between the countries belonging to the European Monetary Union (EMU). This theoretical insight enables us to explain why and how the introduction of the euro and the adoption of a common monetary policy may have led to signi…cant changes in debt structure ...

In this paper, we build up a signaling model that links management pay-off in corporate restructuring (widely known as absolute priority violations) and optimal composition of a firm’s debt. We show that in the event of corporate reorganization and the renegotiation of debt claims, the management receives a pay-off that consists of two elements. (a) A signaling component that sends a message to...

Financing pattern of firms from developing nation always remains a mystifying area of finance. Present study aims to investigate the determinants of capital structure. Moreover, it is also tried to answer that how these potential determinants can affect financing pattern of developing nation firms. To achieve research objectives data for 323 Pakistani manufacturing firms have taken for the peri...

This paper shows that if the timing of debt auctions within a period is sufficiently unfettered, any stochastic outcome path of real economic variables which can be achieved as an equilibrium of a game where a government has access to a rich debt structure can be achieved as an equilibrium of a game where the government can only issue one period debt. Likewise, any stochastic outcome path which...

This paper investigates the effect of managerial flexibility on the choice of capital structure for a firm and the corresponding valuation of its long term debt. We consider a general model in continuous time where the manager (who is not a shareholder) of a firm with long term debt in place may dynamically switch strategies at random times so as to maximize his expected discounted compensation...

Public debt management, in the sense of manipulation of a given stock, has been a policy problem at least since World War II. During this time, dissatisfaction with the handling of the debt has surfaced sporadically. A feeling that the average maturity of the debt should be longer than it was has been pervasive. But no generally accepted philosophy of the public debt management has emerged. Var...

We consider optimal government debt maturity in a deterministic economy in which the government can issue any arbitrary maturity structure and in which bond prices are a function of the government’s current primary surplus and the path of future primary surpluses. The government sequentially chooses policy, taking into account how the current primary surplus and the structure of maturity issuan...

Software refactoring has been recognised as a valuable process during software development and is often aimed at repaying technical debt. Technical debt arises when a software product has been built or amended without full care for structure and extensibility. Refactoring is useful to keep technical debt low and if it can be automated there are obvious efficiency benefits. Using a combination o...

Article history: Received 25 April 2012 Received in revised form 29 August 2013 Accepted 5 September 2013 Available online 13 September 2013 This paper examines the relation between business group affiliation and the cost of debt capital. The co-insurance effect associated with business groups can reduce the cost of debt, while expropriation by controlling shareholders can raise the cost of deb...