Valuating the capital structure under incomplete information

Valuating the capital structure under incomplete information

Can higher uncertainty increase the valuation (market-to-book value) of young firms compared to more established ones? As the current market shows higher levels of uncertainty about companies’ expected cash flows and changes in firm value, the question of the fundamental convex relationship between...

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Bibliographic Details
Main Authors: Dong Meng Ren, Yunmin Chen, Alex Maynard, Sergiy Pysarenko
Format: Article
Language:English
Published: LLC "CPC "Business Perspectives" 2023-07-01
Series:Investment Management & Financial Innovations
Subjects:
Bayesian learning
cash flow
leverage ratio
life cycle
parameter uncertainty
Online Access:https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18493/IMFI_2023_03_Ren.pdf

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