The Financial structure of Corpartions
Speaker: Professor Vojislav Maksimovic Bank of America Professor of Finance, University of Maryland
Location: Universiteit van Amsterdam, Faculty of Economics and Econometrics, Finance Group, Roetersstraat 11, Amsterdam, meetingroom E1.22.
How should corporations finance themselves considering the uncertainty in the (product) markets they operate in? Prof. Maksimovic will consider the interdependence between the financial structures of firms and their market positioning and technology choices. The riskiness of a firm’s cash flows depends, in part, on whether its competitors are making similar or different choices when they adopt new technologies or position their brands. Thus, even in industries in which no competitor or group of competitors is dominant, a firm’s financial policies are affected by the actions of the other firms in the industry. The corporate finance literature has identified situations in which increases in a firm’s leverage lead to a reduction in its perceived ability to compete strongly, and some cases in which leverage leads to an increased incentive to engage in risky, aggressive product market behavior. Both these cases are examined. Mr. Maksimovic will also discuss actual case studies for six industries.
If you wish to attend, please send an e-mail to firstname.lastname@example.org before March 12.
* Arrival and welcome
* Talk by Professor Vojislav Maksimovic