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Capital Structure and Corporate Governance (International Banking and Finance Law Series)

Lorenzo Sasso




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 | #2813932 in eBooks |  2013-08-01 |  2013-08-01 | File type: PDF

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Despite a clear distinction in law between equity and debt, the results of such a categorization can be misleading. The growth of financial innovation in recent decades necessitates the allocation of control and cash-flow rights in a way that diverges from the classic understanding. Some of the financial instruments issued by companies, so-called hybrid instruments, fall into a grey area between debt and equity, forcing regulators to look beyond the legal form of an inst...

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