Motivated by the growing literature studying the effects of stock market mispricing on firm behaviour (see for example Stein 1996, Shleifer and Vishny 2003, and Baker 2009), we develop a simpleframework for thinking about how stock market mispricing can offset agency costs and induce controlling shareholders to raise outside equity.
Yes, the detail must be got right, unintended consequences must be spotted and guarded against, the difference between 'solid organs' and other forms of donation must be considered, but a simple, clear framework must be maintained.