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Firm insiders a manager and a board face moral hazard in relation to their outside shareholders in a repeated game with asymmetric information and stochastic market outcomes. The manager determines whether or not outsiders are cheated; the board, whose objectives differ from those of outside...
Persistent link: https://www.econbiz.de/10009363724
We examine self-enforcing honesty in firm-investor relations in an imperfect public information game. Minimum firm size requirements and moral hazard limit ability to raise outside capital, yielding a floor on personal wealth required to enter entrepreneurship. Credible auditing could create...
Persistent link: https://www.econbiz.de/10009363764
This study is an attempt to analyse the determinants of private investment in Pakistan over the period 1972-2005. The … investment. The results show that most traditional factors have little or no impact on private investment. These results may … prerequisites for private investment to flourish. We find partial support for the accelerator principle and the crowding …
Persistent link: https://www.econbiz.de/10009365406
uncertainty, in which the probability of investment failure decreases with the host country's infrastructure level and increases …
Persistent link: https://www.econbiz.de/10009363890
Recent theoretical and empirical literature suggests that foreign direct investment (FDI) exerted positive impact on … economic growth through the process of technological diffusion. The literature also suggests that the development of the … growth. A welldeveloped domestic financial sector enhances efficient allocation of financial resources and improves the …
Persistent link: https://www.econbiz.de/10009363808
benefits on growth (Fan and Hu 2007; Luo 2007; Ran et al. 2007). Motivated by Alfaro et al.s (2003) model, this study tests … whether poor financial market development might be responsible for the relatively low benefits of FDI on growth in China. We … negative growth implications. In contrast, credits to small private enterprises are associated with a positive impact of FDI on …
Persistent link: https://www.econbiz.de/10009365250
Over the past sixty years, the concept of development has expanded from economic growth and investment, to poverty … different development aspects : the importance of investment, infrastructure and human capital to growth and poverty reduction … development; and in turn of enterprise development to investment and therefore growth as well as to poverty reduction; the …
Persistent link: https://www.econbiz.de/10009363294
competitive environment (that restricts innovation and hence growth). Without improving the state of governance and that of …Following the Hausmann, et al. (2005) methodology, we attempt to identify the constraints to growth in Pakistan. We … constraints to growth in Pakistan. These are : (i) poor state of governance, (ii) poor state of institutions, and (iii) lack of …
Persistent link: https://www.econbiz.de/10009363661
.e., Environment Kuznets Curve, EKC) of 14 major Indian States in the light of their very high economic growth in the post … EKC. The results suggest that the economic growth is mostly at the cost of environmental quality. …
Persistent link: https://www.econbiz.de/10009365185
, New Zealand would need to grow at between 4.7% and 7.6% per year. This exceeds New Zealands highest average annual growth … rate over a five-year period of 4.6%, in the early 1960s. These calculations hold Australian growth rates constant at its … annual average over 2000 to 2007. If Australia were to grow faster than its recent performance, the growth rates required of …
Persistent link: https://www.econbiz.de/10009365494