A Theory of Risk Capital

Submitted on 25th June 2015

We present a theory of risk capital and of how tax and other costs of risk capital should be allocated in a financial firm. Risk capital is equity investment that backs obligations to creditors and other liability holders and maintains the firm

Source
Fisher College of Business, Ohio State University
Length of Resource
58
Resource File
Author
Isil Erel, Stewart C. Myers, and James A. Read, Jr.
Date Published
Publication Type
paper
Resource Type
academic