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Cited by 224

The DOI matches its Crossref record; 6 of the 6 references it cites were found in a registry or an index.

Debt Versus Equity under Asymmetric Information

Narayanan, M. P.·1988·The Journal of Financial and Quantitative Analysis
DOI 10.2307/2331023
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Abstract

In a world of asymmetric information in which only the insiders know the quality of the firm, it is claimed that debt, even if it is risky, is more advantageous than outside equity because issuance of debt is less attractive to inferior firms. The advantage to debt arises from the fact that it can keep unprofitable firms out of the market, thus improving the average quality of firms in the market. This advantage exists even if the firms cannot be perfectly sorted in the signaling equilibrium.

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Metadata

Authors
Narayanan, M. P.
Venue
The Journal of Financial and Quantitative Analysis
Publisher
JSTOR
Published
1988-03
Volume
23
Issue
1
Pages
39
ISSN
0022-1090 (ISSN-L)
DOI
10.2307/2331023
OpenAlex
W2161960891
Cited by
224
References
6
FWCI
16.70
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: Debt Versus Equity under Asymmetric Information. https://app.cochat.ai/papers/10.2307/2331023
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Narayanan, M. P. (1988). Debt Versus Equity under Asymmetric Information. The Journal of Financial and Quantitative Analysis. https://doi.org/10.2307/2331023

Data sources

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.