Advertising

Asset substitution problem

• Arises when the stockholders substitute riskier assets for the firm's existing assets and expropriate value from the debt holders.

 
 

Follow this link for all the terms related to asset.

 
 Embedded terms in definition
 Assets
Debt
 
 Related Terms
 

<< Asset substitution Asset swap >>

What Happens If a Bank Fails?: How the FDIC protects depositors, including providing quick access to insured funds. More...

Never, never, never give up. - Winston Churchill, Sir (1874-1965)

Advertising



Copyright 2009-2017 GVC. All rights reserved.