In this essay the meaning and importance of several crucial terms from financial economics will be discussed, namely: ‘information asymmetry’,‘agency costs’,‘dividend policy’,‘signalling’ and ‘clientele effects’. Firstly, each one of these concepts will be defined and exemplified for better understanding. After having done this, the connection between these single concepts will be highlighted and shown as to how they may have reciprocal influence. To conclude, a short summary will highlight the implications for public quoted firms and their managers.
- Quote paper
- Thorsten Wenke (Author), 2009, Meaning and importance of key terms of Financial Economics , Munich, GRIN Verlag, https://www.grin.com/document/137221
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