Deadweight costs and optimal capital structure.

• Main Authors: Liang, Huijun., Lim, Wei Ling.
• Other Authors: Suman Banerjee
• Format: Final Year Project
• Language: English
• Published: 2011
• Subjects: DRNTU::Business::Management::Capital
• Online Access: http://hdl.handle.net/10356/44150
• Institution: Nanyang Technological University

In this paper, we explore the incoporation of deadweight costs in the restructuring process for multinational corporations (henceforth, MNCs) and develop the following theory: A MNC will not completely avoid renegotiation in a country where deadweight costs is prevalent. This theory suggests why hav...