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Zonder onderwerpscode: wereldeconomie, ontwikkelingsproblematiek

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Corporations --- Agency (Law) --- Sociétés --- Mandat --- Finance --- Finances --- 658.152 --- -Business corporations --- C corporations --- Corporations, Business --- Corporations, Public --- Limited companies --- Publicly held corporations --- Publicly traded corporations --- Public limited companies --- Stock corporations --- Subchapter C corporations --- Business enterprises --- Corporate power --- Disincorporation --- Stocks --- Trusts, Industrial --- Attorneys --- Principal and agent --- Commercial law --- Contracts --- Partnership --- Commercial agents --- Mandate (Contract) --- Capital investment. Fixed assets. Use of funds --- -Capital investment. Fixed assets. Use of funds --- 658.152 Capital investment. Fixed assets. Use of funds --- -Attorneys --- Business corporations --- Sociétés --- Business finance --- Capitalization (Finance) --- Corporate finance --- Corporate financial management --- Corporation finance --- Financial analysis of corporations --- Financial management, Corporate --- Financial management of corporations --- Financial planning of corporations --- Managerial finance --- Going public (Securities) --- Corporations - Finance

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Most discussions of corporate capital structure have been set in the context of a complete capital market. In this paper we study the determinants of capital structure for the incomplete markets case, where incompleteness manifests itself in the form of divergent borrowing and lending rates. We argue that firms have a natural incentive to tailor their financing choices so as to narrow such divergences. While this implies an optimal capital structure for firms in the aggregate, however, competition will drive out profits, and the capital structure of any individual firm may still be a matter of indifference. Firms' incentive to try to complete the market provides a rationale for corporate finance even in a taxless environment. This incentive may also shed light on such related issues as corporate mergers, the use of complex securities and the role of financial intermediaries.