Optimal Security Design and Dynamic Capital Structure in a Continuous‐Time Agency Model

By Peter M. DeMarzo, Yuliy Sannikov. 2006

650 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/a79cf9b7e1350e9dd5784372ed1e5d0b5f72f1df

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Citations in the corpus

A Model of Dynamic Compensation and Capital Structure (2011, positive): “DeMarzo and Fishman (2007), DeMarzo and Sannikov (2006), and Biais, Mariotti, Plantin, and Rochet (2007) solve a dynamic contracting problem with a risk-neutral agent, in which the limited liability restriction is imposed.6 In contrast, this paper takes the Holmstrom and Milgrom (1987) framework,…”
Collateral, Taxes, and Leverage (2016, neutral): “12”
Capital Structure and Debt Structure (2010, neutral): “…the bank, and thus rely more heavily on bank financing.12 The second group of theories examines why firms structure debt into multiple classes based on priority, maturity, or type (Diamond (1993), Besanko and Kanatas (1993), Park (2000), DeMarzo and Fishman (2007), and DeMarzo and Sannikov (2006)).”
Uncertainty Shocks and Balance Sheet Recessions (2017, methodology): “The contracting setup is related to the literature on dynamic contracts in continuous time, such as Sannikov (2008) and especially DeMarzo and Sannikov (2006) (orDeMarzo and Fishman [2007] in discrete time).”
Dynamic Agency and the q Theory of Investment (2012, background): “The objective is to examine the effects of financing frictions (costly external financing) on the relation between firms’ investment decisions and Tobin’s q, where the cost of external financing endogenously arises from agency problems.”
Macroeconomics with Financial Frictions: A Survey (2012, positive): “See DeMarzo and Sannikov (2006) for a related continuous-time principle agent problem.”
Optimal Mortgage Design (2010, methodology): “Methodologically, our approach is based on continuous-time techniques used by DeMarzo and Sannikov (2006).”