Federal ID: 91-6001537
ISSN: 0022-1090 (Print) | 1756-6916 (Online)
Capital Structure with Information About the Upside and the Downside
Pierre Chaigneau ♦ We introduce two dimensions of uncertainty, about the upside and the downside of an asset, in a model of asset valuation under asymmetric information. This justifies capital structures with equity and risky debt for information revelation purposes.…