Author: Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
Investment Decisions, Managerial Discretion, and Optimal Capital Structure with Jump-Diffusion Process
Author: Investment Decisions, Managerial Discretion, and Optimal Capital Structure with Convertible Debt
Author: Investment Decisions, Managerial Discretion, and Optimal Capital Structure with Learning-Curve Technology
Author: Investment under Uncertainty
Author: Robert K. DixitPublisher: Princeton University Press
ISBN: 1400830176
Category : Business & Economics
Languages : en
Pages : 484
Book Description
How should firms decide whether and when to invest in new capital equipment, additions to their workforce, or the development of new products? Why have traditional economic models of investment failed to explain the behavior of investment spending in the United States and other countries? In this book, Avinash Dixit and Robert Pindyck provide the first detailed exposition of a new theoretical approach to the capital investment decisions of firms, stressing the irreversibility of most investment decisions, and the ongoing uncertainty of the economic environment in which these decisions are made. In so doing, they answer important questions about investment decisions and the behavior of investment spending. This new approach to investment recognizes the option value of waiting for better (but never complete) information. It exploits an analogy with the theory of options in financial markets, which permits a much richer dynamic framework than was possible with the traditional theory of investment. The authors present the new theory in a clear and systematic way, and consolidate, synthesize, and extend the various strands of research that have come out of the theory. Their book shows the importance of the theory for understanding investment behavior of firms; develops the implications of this theory for industry dynamics and for government policy concerning investment; and shows how the theory can be applied to specific industries and to a wide variety of business problems.
Informational Asymmetry between Managers and Investors in the Optimal Capital Structure Decision
Author: Matthias BankPublisher:
ISBN:
Category :
Languages : en
Pages : 55
Book Description
In this article, we consider the impact of asymmetric information between managers and investors on the optimal capital structure decision. This is done within a continuous-time framework, where the relevant state variable is given by the EBIT value of the firm; an approach taken by Goldstein et al. (2001), Hackbarth et al. (2003), Dangl amp; Zechner (2004) amongst others. Our setup differs in that we assume the EBIT to follow an Arithmetic Brownian motion, i.e. it can assume negative values. More importantly, we extend this framework in two directions: (i) We introduce a separate management claim. (ii) We introduce asymmetric information between managers and investors by assuming that claimants receive noisy signals, which they process according to rational expectation principles. Our results show, that managers always try to avoid debt, and that their optimal bankruptcy threshold is always lower, than the threshold set by equity holders. The introduction of asymmetric information changes the optimality conditions, and consequently the capital structure decision. It is shown, that the informational asymmetry can substantially lower the optimal leverage ratio, even without assuming that managers are entrenched.
Optimal Investment Decisions
Author: Pierre MasséPublisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 524
Book Description
Corporate Investment Decisions
Author: Michael PoguePublisher: Business Expert Press
ISBN: 1606490656
Category : Business & Economics
Languages : en
Pages : 196
Book Description
This book is intended for both practising managers who require a thorough knowledge of the principles of making investment decisions in the real world and for students undertaking financial courses whether at undergraduate, MBA or professional levels. The subject matter encompasses relevant aspects of the investment decision varying from a basic introduction to the appraisal techniques available to placing investment decisions within a strategic context and coverage of recent developments including real options, value at risk and environmental investments.
A Decision Theoretic Approach to Optimal Investment Decisions and an Optimal Financial Structure Under Risk
Author: Franz Josef SosnowskiPublisher:
ISBN:
Category : Capital budget
Languages : en
Pages : 518
Book Description
Managerial Discretion and Investment Decisions of State-owned Firms
Author: Elisabetta BerteroPublisher:
ISBN:
Category : Government business enterprises
Languages : en
Pages : 32
Book Description
The New Palgrave Dictionary of Economics
Author: Publisher: Springer
ISBN: 1349588024
Category : Law
Languages : en
Pages : 7493
Book Description
The award-winning The New Palgrave Dictionary of Economics, 2nd edition is now available as a dynamic online resource. Consisting of over 1,900 articles written by leading figures in the field including Nobel prize winners, this is the definitive scholarly reference work for a new generation of economists. Regularly updated! This product is a subscription based product.