Accounting information in the market for debt : a case study
With public debt financing being more readily available, the conflict of interests between bondholders and shareholders has grown into a topic of much interest. This conflict arises because managers who control the firm’s resources, are assumed to be acting in the interests of shareholders at the ex...
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| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project |
| Language: | English |
| Published: |
2014
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/55558 |
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| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | With public debt financing being more readily available, the conflict of interests between bondholders and shareholders has grown into a topic of much interest. This conflict arises because managers who control the firm’s resources, are assumed to be acting in the interests of shareholders at the expense of bondholders. As a result, various contracting mechanisms arise to limit the manager’s opportunistic behaviour. The debt contract is one of the primary mechanism. |
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