Is the Nexus of Corporate and Public Financial Management Institutionalized in Special Purpose Entities?

Posted: 24 Apr 2013

See all articles by Robert Eger

Robert Eger

Government of the United States of America - Graduate School of Business and Public Policy

Date Written: April 23, 2013

Abstract

A novel integration of public and corporate financial theory is used to model capital structure in special purpose organizations. The expectation is that considering the similarities to corporate structure and managerial objectives these organizations will display evidence of an intergovernmental modified pecking order approach to capital structure. The censored probit method suggests that special purpose entities follow an intergovernmental modified pecking order of capital structure, with correct classification in excess of eighty-nine percent. The results support a direct link between intergovernmental revenue and the capital structure of the organization, providing insight into the tie between managerial costs and benefits.

Keywords: Financial management, capital structure, special purpose entities, fiscal federalism

JEL Classification: H77, H83, L91

Suggested Citation

Eger, Robert, Is the Nexus of Corporate and Public Financial Management Institutionalized in Special Purpose Entities? (April 23, 2013). Available at SSRN: https://ssrn.com/abstract=2255781 or http://dx.doi.org/10.2139/ssrn.2255781

Robert Eger (Contact Author)

Government of the United States of America - Graduate School of Business and Public Policy ( email )

555 Dyer Road
Monterey, CA 93943
United States
831-656-7625 (Phone)

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