Ownership and control and the financing and investment policies of the firm

Abstract

This thesis is concerned with deriving optimal financing and investment policies of the firm. A number of models is developed with differing assumptions relating to the capital market and the firms motivation. All of these models are dynamic: they explicitly take into account the proposition that some funds can be obtained more quickly than others and they describe the optimum time path of adjustment from a non-optimum position one to an optimum one. The overall purpose of the thesis is to investigate, at a theoretical level only , the effects of the separation of ownership and control on the investment and financing policies of the firm. Show more