Yan, An; Nandy, Debarshi; Chemmanur, Thomas - Econometric Society - 2004
the literature. We consider a firm facing a financial market characterized by asymmetric information, and significant … firm issues straight debt, ordinary convertibles, or equity if the extent of asymmetric information facing it is large, but … extent of asymmetric information but a greater probability of financial distress. Our model provides a rationale for the …