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VERSION:2.0
PRODID:-//Memento EPFL//
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SUMMARY:News about Zero-Leverage Firms
DTSTART:20170207T120000
DTEND:20170207T130000
DTSTAMP:20260509T131751Z
UID:e45a91e26084abc73a03e1ce6c252148de622382033566c5769283a1
CATEGORIES:Conferences - Seminars
DESCRIPTION:Thomas GEELEN (PhD student)\nI develop a dynamic capital struc
 ture model in which creditors face adverse selection and learn about the f
 irm’s quality from news. Shareholders of a high quality firm prefer to p
 ostpone debt issuance so that creditors can learn about the firm’s quali
 ty\, which lowers the underpricing of its debt. At some point the benefits
  of waiting no longer outweigh the current tax benefits and shareholders d
 ecide to issue debt. This setup endogenously creates a zero-leverage firm\
 , which is expected to issue debt in the future and pays dividends. Finall
 y\, I show that shorter maturity debt alleviates the adverse selection and
  speeds up debt issuance.
LOCATION:UNIL\, Extranef\, room 126 https://planete.unil.ch/plan/?local=EX
 T-126
STATUS:CONFIRMED
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