Evaluation of the debt-equity distinction impacts investor decision-making, highlighting its importance for financial reporting.
Evaluates the importance of the distinction between debt and equity to investor decision-making. Single and compound financial instruments; Entity theory by Paton concluding the irrelevance of corporate capital structure; Financial reporting; Capital structure, risk and returns; Investment and production; Dividends; Financial option contracts.
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Myrtle W. Clark (1993) studied this question.
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