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Theory of the Firm

In: Financial Economics

Author

Listed:
  • Thorsten Hens

    (University of Zurich)

  • Marc Oliver Rieger

    (University of Trier)

Abstract

We will now extend the financial economy $$\mathcal{E}_{F}$$ to cover problems of production and production units, i.e. firms. Among other things, this allows conclusions about the behaviour of firms in markets. So far we assumed bond payoffs to be exogenous, ignoring the decision-making process of the bonds’ issuers. A precise theory of the firm will analyze this process, resulting in bonds whose payoff structure is determined by various economic parameters.

Suggested Citation

  • Thorsten Hens & Marc Oliver Rieger, 2016. "Theory of the Firm," Springer Texts in Business and Economics, in: Financial Economics, edition 2, chapter 6, pages 257-276, Springer.
  • Handle: RePEc:spr:sptchp:978-3-662-49688-6_6
    DOI: 10.1007/978-3-662-49688-6_6
    as

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