<P><FONT size=4>Agency Costs, Risk Management, and Capital Structure</FONT></P>
<P><FONT size=4>Hayne E. Leland*April 18, 1998</FONT></P>
<P><FONT size=4>代理成本、风险管理和资本结构 48页 英文</FONT></P>
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<P>The joint determination of capital structure and investment risk is exam-<BR>ined. Optimal capital structure re<BR>ects both the tax advantages of debt less<BR>default costs (Modigliani-Miller), and the agency costs resulting from asset sub-<BR>stitution (Jensen-Meckling). Agency costs restrict leverage and debt maturity<BR>and increase yield spreads, but their importance is relatively small for the range<BR>of environments considered.<BR>Risk management is also examined. Hedging permits greater leverage. Even<BR>when a rm cannot precommit to hedging, it will still do so. Surprisingly,<BR>hedging benets often are greater when agency costs are low.</P>