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Definition of Moral hazard - Finance dictionary
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Moral hazard (See Chapter 34 of the Vernimmen)
Moral hazard is a situation of a totally unbalanced group corporate structure, when Debt no longer acts as an incentive for management. Corporate managers will be tempted to continue expanding using Debt until the group becomes too big to fail.
Moral hazard (See Chapter 34 of the Vernimmen)
Moral hazard is a situation of a totally unbalanced group corporate structure, when Debt no longer acts as an incentive for management. Corporate managers will be tempted to continue expanding using Debt until the group becomes too big to fail.
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Definitions of terms begining
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Moral hazard (See Chapter 34 of the Vernimmen)
Moral hazard is a situation of a totally unbalanced group corporate structure, when Debt no longer acts as an incentive for management. Corporate managers will be tempted to continue expanding using Debt until the group becomes too big to fail.
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