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    Firms, Contracts, and Financial Structure

Firms, Contracts, and Financial Structure

Oliver Hart
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      This book provides a framework for thinking about economic instiutions such as firms. The basic idea is that institutions arise in situations where people write incomplete contracts and where the allocation of power or control is therefore important. Power and control are not standard concepts in economic theory. The book begins by pointing out that traditional approaches cannot explain on the one hand why all transactions do not take place in one huge firm and on the other hand why firms matter at all. An incomplete contracting or property rights approach is then developed. It is argued that this approach can throw light on the boundaries of firms and on the meaning of asset ownership. In the remainder of the book, incomplete contacting ideas are applied to understand firms' financial decisions, in particular, the nature of debt and equity (why equity has votes and creditors have foreclosure rights); the capital structure decisions of public companies; optimal bankruptcy procedure; and the allocation of voting rights across a company's shares. The book is written in a fairly non-technical style and includes many examples.;This book is intended for academic, graduate and advanced u
      Format: CONTRIBUTORS: Oliver Hart EAN: 9780198288817 COUNTRY: United Kingdom PAGES: WEIGHT: 301 g HEIGHT: 215 cm
      PUBLISHED BY: Oxford University Press DATE PUBLISHED: 1995-10-05 CITY: GENRE: BUSINESS & ECONOMICS / Economics / Theory WIDTH: 139 cm SPINE:

      Book Themes:

      Microeconomics, Budgeting and financial management

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      Oliver Hart has written for the Wall Street Journal and the Financial Times as well as contributing to numerous refereed journals. He is currently a member of the Econometric Society and has taught at Harvard, the LSE, MIT, Exeter and Cambridge Universities among others.
      This book provides a framework for thinking about economic instiutions such as firms. The basic idea is that institutions arise in situations where people write incomplete contracts and where the allocation of power or control is therefore important. Power and control are not standard concepts in economic theory. The book begins by pointing out that traditional approaches cannot explain on the one hand why all transactions do not take place in one huge firm and on the other hand why firms matter at all. An incomplete contracting or property rights approach is then developed. It is argued that this approach can throw light on the boundaries of firms and on the meaning of asset ownership. In the remainder of the book, incomplete contacting ideas are applied to understand firms' financial decisions, in particular, the nature of debt and equity (why equity has votes and creditors have foreclosure rights); the capital structure decisions of public companies; optimal bankruptcy procedure; and the allocation of voting rights across a company's shares. The book is written in a fairly non-technical style and includes many examples.;This book is intended for academic, graduate and advanced u
      Format: CONTRIBUTORS: Oliver Hart EAN: 9780198288817 COUNTRY: United Kingdom PAGES: WEIGHT: 301 g HEIGHT: 215 cm
      PUBLISHED BY: Oxford University Press DATE PUBLISHED: 1995-10-05 CITY: GENRE: BUSINESS & ECONOMICS / Economics / Theory WIDTH: 139 cm SPINE:

      Book Themes:

      Microeconomics, Budgeting and financial management

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      Oliver Hart has written for the Wall Street Journal and the Financial Times as well as contributing to numerous refereed journals. He is currently a member of the Econometric Society and has taught at Harvard, the LSE, MIT, Exeter and Cambridge Universities among others.

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