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 >>

"Green" Banking: Saving the Environment as You Save and Borrow Money: You're probably already recycling paper, glass and plastic. But did you know you also may be able to help save the environment as you do your banking? Here are options that may be available from your bank. More...

We are drowning in information, but starved for knowledge. - John Naisbilt

Advertising



Copyright 2009-2017 GVC. All rights reserved.