exert effort in utilizing investment opportunities, which helps them keep up with their peers during industry movements. In …

exert effort in utilizing investment opportunities, which helps them keep up with their peers during industry movements. In …

This paper addresses the issue of how regulatory constraints affect firm s investment choices when the firm has an … option to delay investment. The RPI-x rule is compared to a profit sharing rule, which increases the x factor in case profits … go beyond a given level. It is shown that a pure price cap and profit sharing are identical in their impact on investment …

We present a dynamic general equilibrium model with heterogeneous firms. Owners of the firms delegate investment … decisions to managers, whose consumption and investment are private information. We solve the optimal incentive compatible … pattern of the relationships between firm size and firms' investment and dividend policies …

We study the interaction between productive investment and persuasion activities in a principal-agent setting with … of success in persuasion. We show that a higher cost of an investment project results in a lower productive investment … principal to a decision rule, curtail the inefficiency and stimulate productive investment …

We examine the case of a firm holding the option to make an uncertain and irreversible investment. The firm is … decentralized and there is information asymmetry between the owner and the investment manager regarding the price of an input (e …

We study how interest alignment between CEOs and corporate boards affects investment efficiency. The model entails a … CEO who encounters an investment project and decides either or not to present it for approval to a board of directors. The … CEO may need to collect and report investment-relevant information because the project is novel in the sense that it …