Capital rationing is an empirically well-documented phenomenon. This constraint requires managers to make investment decisions between mutually exclusive investment opportunities. In a multiperiod agency setting, this paper analyses accounting rules that provide managerial incentives for...

Capital rationing is an empirically well-documented phenomenon. This constraint requiresmanagers to make investment decisions between mutually exclusive investmentopportunities. In a multiperiod agency setting, this paper analyses accounting rules thatprovide managerial incentives for efficient...