Debt-equity choice as a signal of earnings profile over time
(2006)
Journal Article
Miglo, A. (2007). Debt-equity choice as a signal of earnings profile over time. Quarterly Review of Economics and Finance, 47(1), 69-93. https://doi.org/10.1016/j.qref.2006.07.001
This paper analyzes debt-equity choice for financing a two-stage investment when a firm's insiders have private information about the firm's expected earnings. When private information is one-dimensional (for example when short-term earnings are comm... Read More about Debt-equity choice as a signal of earnings profile over time.