| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5058574 | Economics Letters | 2015 | 4 Pages |
Abstract
â¢We study the Modigliani-Miller Theorem with incomplete markets and trading limits.â¢There exist state-dependent limits under which financial policy is irrelevant.â¢A no short-selling limit on equity is innocuous in spite of being state-independent.
We study the Modigliani and Miller Theorem under portfolio constraints. We show that there exist state-dependent trading limits under which financial policy is irrelevant. In addition, a no short-selling constraint on equity is innocuous in spite of being state-independent.
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Orhan Erem Atesagaoglu, Eva Carceles-Poveda,