Abstract
We will now extend the financial economy ε F to cover problems of production and production units, i.e. firms. Among other things, this allows conclusions about the behaviour of firms in markets. So far we assumed bond payoffs to be exogenous, ignoring the decision-making process of the bonds’ issuers. A precise theory of the firm will analyze this process, resulting in bonds whose payoff structure is determined by various economic parameters.
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References
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© 2007 Springer-Verlag Berlin Heidelberg
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Hens, T., Rieger, M.O. (2007). Theory of the Firm. In: Financial Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-36148-0_6
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DOI: https://doi.org/10.1007/978-3-540-36148-0_6
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