Does Opaqueness Make Equity Capital Expensive for Banks?

Bank managers often claim that equity is expensive, which contradicts the Modigliani-Miller irrelevance theorem. An opaque bank must signal its solvency by paying high and stable dividends in order to keep depositors tranquil. This signalling may require costly liquidations if the return on assets h...

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Detalles Bibliográficos
Autor Principal: Kauko, Karlo
Formato: Artículo (Article)
Lenguaje:Español (Spanish)
Publicado: Universidad del Rosario 2014
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