Read e-book online Corporate Policies in a World with Information Asymmetry PDF

Modern company finance conception, originating with the seminal paintings of Merton Miller and Franco Modigliani, has confirmed that those judgements rely on the data that the chief and traders have concerning the firm's destiny money flows.

In this booklet, the authors learn those judgements by way of assuming that the chief has deepest information regarding the firm's destiny money flows. they supply a unified framework that yields new theoretical insights and explains many empirical anomalies documented within the literature.