Dalmazzo, Alberto (1992) Wage negotiations and capital structure: a strategic bargaining approach. CEPDP (91). London School of Economics and Political Science. Centre for Economic Performance, London, UK.
Full text not available from this repository.Abstract
We analyse the relations between firm''s debt and bargained wage level and its implications for the optimal choice of the capital structure. Similarly to Hart and Moore (1991), we place the analysis of the feasible debt contracts in a strategic bargaining setting, in which both the management and the workforce of the firm have human capital specificities in production. We obtain that debt repayments constrain wage levels, providing an advantage for debt financing. Moreover, either under investment can arise, due to wealth constraints, or on the contrary, firms may borrow more than what is required by the production process.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://cep.lse.ac.uk |
| Additional Information: | © 1992 Alberto Dalmazzo |
| Divisions: | Centre for Economic Performance |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor |
| Date Deposited: | 20 Aug 2008 15:47 |
| Last Modified: | 13 Sep 2024 19:33 |
| URI: | http://eprints.lse.ac.uk/id/eprint/21037 |
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