Changing Capital Structure with Reinsurance : Wealth and Income Effects ( Capital Structure Swaps and Firm Value : Evidence from Seasoned Equity Offerings )


Existing research on capital structure and security issuance generally finds that when equity is undervalued, firms should issue debt and repurchase outstanding equity. However, the potential also exists for firms to enrich controlling shareholders by issuing undervalued equity. Within the insurance context, by exploiting their information advantage about… (More)

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