Agency Cost of Debt and Inside Debt

Agency Cost of Debt: Definition, Minimizing, Vs. Cost of Equity

Agency cost of equity refers to the conflict of interest that arises between management and shareholders. When management makes decisions that might not be in ...

Agency Cost of Debt and Inside Debt: The Role of CEO ...

We find that overconfident CEOs exhibit greater inside debt incentives (ie incentives arising from defined-benefit pensions and deferred compensation).

Agency Cost of Debt and Inside Debt: The Role of CEO ...

Using a sample of US firms in Standard & Poor's ExecuComp for the pe- riod 2006–2019, we find that overconfident CEOs exhibit greater inside debt incentives. ( ...

Evidence on the Impact of the Agency Costs of Debt on Corporate ...

4 This paper is a first attempt to test agency theory by associating the capital structure decision with inside ownership. The use of Value Line as a data ...

Agency cost of debt as incentive for executive inside debt

In this study, the author uses the value of non- tax-deductible deferred compensation from the ExecuComp database as the measure of inside debt, ...

Learn About Direct and Indirect Agency Costs

Agency cost of debt generally happens when debt holders are afraid the management team may engage in risky actions that benefit shareholders more than ...

(PDF) Agency cost of debt as incentive for executive inside debt

Jensen and Meckling (1976) suggest that debt-like compensation could lower the agency cost of debt. Nevertheless, empirical evidence is still ...

Inside Debt* | Review of Finance - Oxford Academic

This paper justifies the use of debt as efficient compensation. Inside debt is a superior solution to the agency costs of debt than the solvency-contingent ...

Does inside debt help mitigate agency problems? The case with ...

The impact of inside debt on firm payout varies contingent on prior agency problems. · CEOs with larger inside debt holdings at overinvested firms increase ...

Agency cost of debt and inside debt : the role of CEO overconfidence

Agency cost of debt and inside debt : the role of CEO overconfidence ; British journal of management. - Oxford : Wiley-Blackwell, ISSN 1467-8551, ZDB-ID 2025938- ...

Measuring the Agency Cost of Debt - MIT

We identify the change in operating policy created by leverage and value this change. The model determines the value of the firm and its associated liabilities ...

The Role of CEO Overconfidence (OPEN ACCESS) - ResearchGate

Request PDF | Agency Cost of Debt and Inside Debt: The Role of CEO Overconfidence (OPEN ACCESS) | This study extends our understanding of CEO inside debt ...

The Agency Advantage of Debt over the Lifecycle of the Firm

of agency costs for both debt and equity results in an optimal capital structure which minimizes the combined agency costs. The agency theory is also supported.

Agency Costs of Debt and Inside Debt: The Role of CEO ...

This study extends our understanding of CEO inside debt compensation under an agency problem perspective by considering the impact of a behavioral trait, ...

CEO narcissism and the agency cost of debt - ScienceDirect.com

Our findings demonstrate that shareholders incur higher debt costs in firms led by narcissistic CEOs relative to non-narcissists. However, considering the ...

Evidence on the Impact of the Agency Costs of Debt on Corporate ...

In the last several years, there has been increased theoretical emphasis on the agent-principal problem as it applies to corporate finance.

Cost of Debt: What It Means and Formulas - Investopedia

The agency cost of debt is the conflict that arises between shareholders and debtholders of a public company when debtholders place limits on the use of the ...

Corporate Refinancing, Covenants, and the Agency Cost of Debt

How valuable are restrictive debt covenants in reducing the agency costs of debt? I exploit the revealed preference decision to refinance ...

What does "agency cost of debt" mean? - AfricanFinancials Helpdesk

Agency cost of debt refers to an increase in cost of debt when the interests of shareholders and management diverge in a publicly owned company.

Does Debt Structure Explain the Relationship between Agency Cost ...

In fact, free cash flow creates a desire among managers for the perquisite consumption, utilizing available funds for various activities that promote their ...