Financing Corporate Capital Formation (National Bureau of Economic Research Project Report)

Benjamin M. Friedman

ISBN 10: 0226264130 / ISBN 13: 9780226264134

Published by University of Chicago Press, 1986

Very Good condition. Very Good dust jacket. A copy that may have a few cosmetic defects. May also contain light spine creasing or a few markings such as an owner's name, short gifter's inscription or light stamp. Seller Inventory # D11L-00514

Synopsis:

Six leading economists examine the financing of corporate capital formation in the U.S. economy. In clear and nontechnical terms, their papers provide valuable information for economists and nonspecialists interested in such questions as why interest rates are so high, why corporate debt has accelerated in recent years, and how government debt affects private financial markets.

Addressing these questions, the contributors focus chiefly on three themes: the actual use of debt and equity financing by corporations in recent years; the factors that drive the financial markets' pricing of debt and equity securities; and the relationship between corporations' real investment decisions and their financial decisions. While some of the papers are primarily expository, others break new ground. Extending his previous work, Robert Taggart finds a closer relationship between corporate and government debt than has been supposed. Zvi Bodie, Alex Kane, and Robert McDonald conclude in their study that the volatility of interest rates under the Volcker regime has led to a rise in real interest rates because of investors' demand for a greater risk premium. All of the papers present empirical findings in a useful analytical framework.

For its new findings and for its expert overview of issues central to an understanding of the U.S. economy, Financing Corporate Capital Formation should be of both historical and practical interest to students of economics and practitioners in the corporate and financial community.

About the Author: Benjamin M. Friedman is professor of economics at Harvard University and a program director at the National Bureau of Economic Research.

Bibliographic Details

Title: Financing Corporate Capital Formation (...
Publisher: University of Chicago Press
Publication Date: 1986
Binding: Hardcover
Condition: Very Good
Dust Jacket Condition: Dust Jacket Included