LEVERAGE, RESOURCE ALLOCATION AND GROWTH
在一个简单的一般均衡模型中，研究资源配置如何影响竞争性经济中的企业，发现企业资本结构独立于其价值，并分析了杠杆变化对企业股价和运营的影响，以及杠杆收购的盈利条件。
The effects of resource allocation on firms comprising the competitive economy are examined within the structure of a simple general equilibrium model. The study shows that capital structure of a firm is independent of its value, — a result that can be characterized as the mirror‐image of the celebrated Modigliani‐Miller proposition. The structure of present analysis highlights how costs of capital assets change, what affects the prices of the firms, and how these changes are reflected in the operations of the firms in an overall economic set up. The paper then establishes that if debt is increased, and the (relatively) levered firm expands, its stock price goes up and the (relatively) less levered firm shrinks and moves in the opposite direction in all respects. The appropriate conditions for profitable leveraged buyout are spelled out, and other conditions are also specified as to when merger is unprofitable. Finally, the paper is concluded with some thoughts on possible future research along the lines outlined in this work.