Capital Structure and Corporate Governance: The Role of Hybrid Financial Instruments

ISBN-13: 9789041148438 / Angielski / Twarda / 2013 / 248 str.

Sasso; Lorenzo Sasso

Opis

Despite a clear distinction in law between equity and debt, the results of such a categorization can be misleading. The growth of financial innovation in recent decades necessitates the allocation of control and cash-flow rights in a way that diverges from the classic understanding. Some of the financial instruments issued by companies, so-called hybrid instruments, fall into a grey area between debt and equity, forcing regulators to look beyond the legal form of an instrument to its practical substance.