Research on Implicit Contracts and Corporate Financial Policy

Author: Cheng Hongwei
Publisher:
Publish Date: 2005-11-01
Features: Based on the long-term transaction relationship between customers and enterprises as the research background, and with the research question of whether the implicit contractual claims of customers affect financial policy choices, this study builds upon the theory of implicit financial contracts between shareholders and creditors as the main stakeholders. Through theoretical models and empirical research, it reveals the intrinsic relationship between implicit contracts and financial policies. The innovative aspects of the research findings are: proposing that the separation of physical ownership of goods and service ownership is the fundamental prerequisite for the existence of implicit contracts; establishing a matrix of corporate liabilities based on implicit liabilities; and developing a model linking implicit liabilities, specific investments, capital structure, and dividend policy. This book offers a unique research perspective, rich content, and a rigorous structure, making it suitable for faculty and graduate students in economics and management at universities, as well as for reference by corporate management personnel.