On the asset substitution problem and the industrial structure

2019 Fiscal Year Final Research Report

• Project/Area Number: 15K21418
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Economic policy; Money/ Finance
• Research Institution: Hosei University
• Principal Investigator: Miyazawa Shinjiro 法政大学, 経営学部, 教授 (30523071)
• Project Period (FY): 2015-04-01 – 2020-03-31
• Keywords: 契約理論 / 寡占理論

Outline of Final Research Achievements

The investment behavior and the industrial structure of companies are analyzed by an optimal debt contracting model. Decrease of initial capital reduces total investment when the level of initial capital is relatively high, but increases total investment when the level is considerably low. In any case, the investment amount in a risk-free project is reduced and the investment amount in a risky project is increased. This result suggests that individual companies may have an incentive to reduce their own capital strategically and such a strategic behavior can increase the expected value of total surplus. It also suggests that capital restructuring support for companies whose financial condition has deteriorated may be undesirable for both the company and society as a whole.

Free Research Field

企業金融論

Academic Significance and Societal Importance of the Research Achievements

本研究の成果は，既存研究では考えてこられなかった資金調達局面における最適契約問題を考えることで，企業の資本構成と市場競争の関係に関する理論を精緻化したとともに，これまでは理論と整合的ではないとみられていた実証研究の結果を説明できるようにしたという学術的意義を持つ。また，本研究の成果は，ライバル企業が存在する企業の再建支援のあり方を検討するための理論的枠組みを提供したという社会的意義を持つ。