Year: 1994
Author: Huber, Bernd
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 114 (1994), Iss. 1 : pp. 63–80
Abstract
The paper studies the choice between debt and leasing contracts in a principalagent framework. It can be shown that leasing can only dominate debt finance, if bankruptcy can occur. One surprising result is that leasing will be preferred since it increases the probability of bankruptcy. The analysis also shows that the introduction of buy options can improve the efficiency of a leasing contract.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.114.1.63
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 114 (1994), Iss. 1 : pp. 63–80
Published online: 1994-01
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 18