Irreversible Investment, Managerial Discretion and Optimal Capital Structure PDF Download
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Author: Andreas Andrikopoulos Publisher: ISBN: Category : Languages : en Pages :
Book Description
We explore the significance of employee compensation and alternative (reservation) income on investment timing, endogenous default, yield spreads and capital structure. In a real-options setting, a manager's incentive to under (over) invest in a project is associated to labor income he has to forego in order to work on the project, the manager's salary, his stake on the project's equity capital and his subsequent income, should he decide to terminate operations. We find that the optimal level of coupon payments decreases with managerial salary and ownership stake while it is increasing in the manager's reservation income. Yield spreads (optimal leverage ratios) are increasing (decreasing) in the manager's salary and ownership stake, while they are decreasing (increasing) in the manager's reservation income. Exploring agency costs of debt as deviations from value-maximizing investment policy, we document a U-shaped relationship between agency costs of debt and the managerial compensation parameters.
Author: Andreas Andrikopoulos Publisher: ISBN: Category : Languages : en Pages :
Book Description
We explore the significance of employee compensation and alternative (reservation) income on investment timing, endogenous default, yield spreads and capital structure. In a real-options setting, a manager's incentive to under (over) invest in a project is associated to labor income he has to forego in order to work on the project, the manager's salary, his stake on the project's equity capital and his subsequent income, should he decide to terminate operations. We find that the optimal level of coupon payments decreases with managerial salary and ownership stake while it is increasing in the manager's reservation income. Yield spreads (optimal leverage ratios) are increasing (decreasing) in the manager's salary and ownership stake, while they are decreasing (increasing) in the manager's reservation income. Exploring agency costs of debt as deviations from value-maximizing investment policy, we document a U-shaped relationship between agency costs of debt and the managerial compensation parameters.
Author: Robert S. Pindyck Publisher: World Bank Publications ISBN: Category : Capital investments Languages : en Pages : 58
Book Description
Irreversible investment is especially sensitive to such risk factors as volatile exchange rates and uncertainty about tariff structures and future cash flows. If the goal of macroeconomic policy is to stimulate investment, stability and credibility may be more important than tax incentives or interest rates.
Author: Carolina Machado Publisher: Springer Nature ISBN: 3030980529 Category : Technology & Engineering Languages : en Pages : 196
Book Description
This book presents the tools and policies necessary to undertake with success post-pandemic crisis. The chapters focus on topics of interest such as the challenges in economic and business sectors around the world, economic and business recession, unemployment, increased market uncertainty, more demanding suppliers and costumer orders, production interruptions, internal organizational and structural demands, among others.
Author: Alkis Thrassou Publisher: Springer Nature ISBN: 3031077652 Category : Business & Economics Languages : en Pages : 268
Book Description
This two-volume edited collection explores the impact of technology on business advancement. Technology is a multifaceted and multidimensional phenomenon, carrying opportunities and risks. Business advancement therefore, can no longer be considered without technological mediation. While Volume I offers insights into technological improvements in the field of global marketing, Volume II focuses on the implications of changing technology on work and employment. It covers topics such as the role of technology in change management, digital transformation, and the impact of AI on employment. Taken together, the books move forward the study of organizations and technology and are ideal resources for business students and researchers.
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.
Author: Niels Philipsen Publisher: Routledge ISBN: 131775039X Category : Business & Economics Languages : en Pages : 368
Book Description
This book explores the role of law and regulation in sustaining financial markets in both developed and developing countries, particularly the European Union, United States and China. The central argument of this book is that law matters for the operation of financial markets, which, in turn, significantly influences the performance of firms, industries, and economies. The Role of Law and Regulation in Sustaining Financial Markets is divided into four parts. Part one addresses the connection between law, financial development, and economic growth. Part two deals with the role of financial regulation, which can be used to correct market failures, such as negative externalities, information asymmetries, and monopolies. Part three focuses on the design, functioning, and performance of different financial instruments. Part four examines the topic of Corporate Social Responsibility. This book contributes to the ‘law and finance’ literature by studying certain conventional issues, such as the relationship between finance and economic growth, and the effects of regulatory quality on financial development, from new perspectives and/or with new evidence, data, and cases. It also explores novel topics, such as project finance contracts, insurance and climate change, the shadow banking system, that have been overlooked in current literature. This book is meaningful not only for the EU and the US, which have suffered considerably from the financial crisis of 2008, but also for China, which is struggling to build a sound institutional infrastructure to govern its increasingly complicated financial system. By comparing the regulatory philosophies and practices of the EU, the US and China, this book will help the reader to understand the diverse nature of the global ‘law and finance’ nexus and avoid succumbing to the myth of "one size fits all".
Author: Richard E. Ottoo Publisher: Routledge ISBN: 113654240X Category : Business & Economics Languages : en Pages : 100
Book Description
How can we value an enterprise, like a young internet start-up company, that has no earnings or cash flows, so that traditional and conventional valuation techniques are therefore not applicable? One of the most notable recent industrial revolutions has been the emergence of Biotechnology and Internet companies. Most of these technology companies are predominantly young with no history of earnings or cash flows to evaluate. This book addresses the problem, and presents a model for valuing enterprises that may have no existing assets but only growth opportunities.
Author: Andreas Andrikopoulos
Author: Andreas Andrikopoulos
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Author: Robert S. Pindyck
Author: Carolina Machado
Author: Alkis Thrassou
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Author: Niels Philipsen
Author: Richard E. Ottoo