Pyramidal Discounts: Tunneling or Overinvestment?

Pyramidal Discounts: Tunneling or Overinvestment?

Martin Holmén, Peter Högfeldt

Series number :

Serial Number: 
073/2005

Date posted :

March 01 2005

Last revised :

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Keywords

  • pyramids • 
  • closed-end fund puzzle • 
  • discounts • 
  • agency costs • 
  • overcapitalization • 
  • overinvestment • 
  • tunneling • 
  • internal cash flows • 
  • retained earnings • 
  • separation of ownership and control • 
  • intercorporate dividends • 
  • corporate taxes • 
  • Investment-cash flow sensitivity • 
  • enhanced pecking order • 
  • marginal Tobin?s

Authors

Real name: 
Peter Högfeldt
Department of Finance, Stockholm School of Economics
Real name: 
Martin Holmén