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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

financial crisismay causeconflicts between debt and equity holders

how highcan leadto conflicts of interests between shareholders and debt holders

the own interest so that they prefer their own interest rather than the interest of the company , on the(passive) can be influenced byA conflict between shareholders and creditors

solvency issuescreatea conflict between the interests of shareholders and creditors

Distresscan causeconflict between debt and equity holders

the wayinfluenceshareholders and credit card debt holders

moral hazard ( Abor & Biekpe(passive) is caused byThe conflict between debt - holders and shareholders

The choices and alternative projects for investment of firmscan createa conflict between bond holders and shareholders

the use of debtcausedthe agency conflict between firm shareholders and debt holders

agency costs of debtresultingfrom conflict of interest between shareholders and debt holders

fully to the costs of the BES resolution as required by burden - sharing rulescontributedfully to the costs of the BES resolution as required by burden - sharing rules

to excessive bank risk taking from society ’scan leadto excessive bank risk taking from society ’s

capital structure(passive) was influenced bycapital structure

how firms are runinfluencehow firms are run

to reducing the amount of capital aid that had to be injected by the state , respectively through their participation in the successive capital increases and in the liability management exerciseshave contributed significantlyto reducing the amount of capital aid that had to be injected by the state , respectively through their participation in the successive capital increases and in the liability management exercises

significantly to reducing the amount of state capital aid that was injected ... having taken part in capital raising by the bankhad contributedsignificantly to reducing the amount of state capital aid that was injected ... having taken part in capital raising by the bank

a total of EUR 505 m to the covering of losses at the five bankscontributeda total of EUR 505 m to the covering of losses at the five banks

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Smart Reasoning:

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