Abstract
With its often unperceived impact, interest rates and inflation volatility strongly affect long term
stability within the firm, surreptitiously reshaping equilibria among different stakeholders and so
raising key corporate governance concerns.
Whereas the impact of interest rates and inflation on capital budgeting issues had been extensively
analyzed, little attention has been paid to corporate governance implications, concerning key issues
such as “optimal” (indexed) contracting, effective corporate ownership (messed up by wealth
expropriation and redistribution), asset substitution or information asymmetries (embedded in hidden
impacts on interest/inflation sensitive assets and liabilities).
The topic is so theoretically and practically captivating, filling a gap in the existing literature and
addressing real value protection targets, unassumingly crucial even for corporate ownership and
control issues.
Lingua originale | English |
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pagine (da-a) | 329-336 |
Numero di pagine | 8 |
Rivista | CORPORATE OWNERSHIP & CONTROL |
Volume | 10 |
Stato di pubblicazione | Pubblicato - 2013 |
Keywords
- Asset & Liability Management
- Cost of Capital
- Duration
- Fixed/floating Debt
- Indexation
- Transaction Costs