TY  - JOUR
AU  - Hart,Oliver
TI  - Financial Contracting
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8285
PY  - 2001
Y2  - May 2001
UR  - http://www.nber.org/papers/w8285
L1  - http://www.nber.org/papers/w8285.pdf
N1  - Author contact info:
Oliver D. Hart
Department of Economics
Littauer Center 220
Harvard University
Cambridge, MA 02138
Tel: 617/496-3461
Fax: 617-495-7730
E-Mail: ohart@harvard.edu
AB  - This paper discusses how economists' views of firms' financial structure decisions have evolved from treating firms' profitability as given; to acknowledging that managerial actions affect profitability; to recognizing that firm value depends on the allocation of decision or control rights.  The paper argues that the decision or control rights approach is useful, even though it is at an early stage of development, and that the approach has some empirical content: it can throw light on the structure of venture capital contracts and the reasons for the diversity of claims.
ER  -