The primary objective of this book is to demonstrate that a firm's financing decisions depend among other things on bargaining power considerations, and to illustrate potential causes for this dependency. Based on a principal-agent analysis where a lender (principal) and a firm (agent) bargain over the financing of the firmas risky project, the author illustrates and analyzes the importance of bargaining power on finance decisions.In this section we review studies of financial contracting where bargaining power aspects have been considered. ... 2.2.3 a quite new area of research is presented , examining the implications of capital market competition for firmsa#39; financinganbsp;...
|Title||:||Bargaining Power Effects in Financial Contracting|
|Publisher||:||Springer Science & Business Media - 2006-11-17|