Noe, Thomas (1993) Cash flow correlations, debt maturity choice, and asymmetric information. In: American Finance Association Meetings, 7 January, 1993, Anaheim, California, USA.Full text not available from this repository.
In an asymmetric information framework, a number of authors have demonstrated the existence and uniqueness of short-term debt pooling equilibria in the absence of dissipative costs. We show that short-term debt pooling is robust to a broad range of deviations from stationarity and intertemporal independence. However, with intertemporal dependence, separating equilibria exist in which short-term debt signals favourable information. Non-stationary allows for separating equilibria in which long-term debt signals favourable information. A range of deviations from stationarity and intertemporal independence also support long-term debt pooling equilibria.
|Item Type:||Conference or Workshop Item (Paper)|
|Keywords:||Asymmetric information; Debt; finance|
|Date Deposited:||07 Jun 2012 08:35|
|Last Modified:||01 Mar 2017 10:50|
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