Firm boundaries and financing with opportunistic stakeholder behaviour

• Main Authors: ANEY, Madhav S., APPELBAUM, Elie, BANERJI, Sanjay
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2017
• Subjects: Incomplete Contracts; Opportunistic Behaviour; Bankruptcy; Capital Structure; Finance; Growth and Development
• Online Access: https://ink.library.smu.edu.sg/soe_research/1964; https://ink.library.smu.edu.sg/context/soe_research/article/2963/viewcontent/CapitalStructure.pdf
• Institution: Singapore Management University

We explore the impact of strategic behaviour between three major stakeholders, namelyequity holders, debt holders, and a supplier of a critical input, on the choice of a firm’s capitalstructure and its organisational design, determining in-house production versus outsourcing theprocurement of the cr...