Flore, Raphael (2018). Optimal Financing Structures. PhD thesis, Universität zu Köln.

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Abstract

The theory of corporate finance focuses on the optimal capital structure of a firm in a given environment: the firm chooses how to finance a given set of assets by selling financial claims to a given set of potential buyers. This dissertation extends the theory of corporate finance by accounting for the fact that both, the set of available assets as well as the demand for claims, can be altered by other firms and investment funds which buy and sell financial claims. The three chapters of the dissertation illustrate different implications of this extension. Chapters 2 and 3 take the assets as given, but study the emergence of intermediation chains: instead of choosing the capital structure that would be optimal if only retail investors bought financial claims, firms can benefit from selling a different composition of debt claims to funds or other firms, which finance these securities by selling their own debt to retail investors. Studying this possibility, the two chapters can explain the existence and some characteristics of intermediation chains that have emerged in financial markets in recent decades. Chapter 4 relaxes the assumption that a firm's set of assets is given and allows firms to buy financial assets created by other agents in the market. The chapter shows how the possibility to buy financial assets challenges common notions about the optimal capital structure of a firm. It thereby addresses an issue of particular importance for the regulation of banks: the supposed costs of capital requirements. An objective of all three chapters is to provide a better understanding of changes in the financial structure of banks and other intermediaries. This includes a better understanding of both, causes for changes that have occurred in recent decades as well as consequences of changes that can be enforced by regulation. In this way, the dissertation contributes to the ongoing debates about the regulation of banks and financial markets.

Item Type: Thesis (PhD thesis)
Creators:
CreatorsEmailORCID
Flore, Raphaelflore@wiso.uni-koeln.deUNSPECIFIED
URN: urn:nbn:de:hbz:38-90019
Subjects: Economics
Management and auxiliary services
Uncontrolled Keywords:
KeywordsLanguage
Capital Structure, Financial Intermediation, Regulation, Maturity Transformation, Cost of CapitalEnglish
Faculty: Faculty of Management, Economy and Social Sciences
Divisions: Faculty of Management, Economy and Social Sciences > Center for Macroeconomic Research (CMR)
Language: English
Date: August 2018
Date of oral exam: 7 November 2018
Referee:
NameAcademic Title
Bierbrauer, FelixProf. Dr.
Hellwig, MartinProf. PhD
Refereed: Yes
URI: http://kups.ub.uni-koeln.de/id/eprint/9001

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