Showing 1 - 10 of 234
to analyze the investment decision of the venture capitalist (VC) in this set-up. The solutions presented are conflictive …
Persistent link: https://www.econbiz.de/10011610084
to analyze the investment decision of the venture capitalist (VC) in this set-up. The solutions presented are conflictive …
Persistent link: https://www.econbiz.de/10012822380
This essay surveys the body of research that asks how the efficiency of corporate investment is influenced by problems of asymmetric information and agency. I organize the material around two basic questions. First, does the external capital market channel the right amount of money to each firm?...
Persistent link: https://www.econbiz.de/10014023874
importance of identifying their relevant sources for firm valuation …
Persistent link: https://www.econbiz.de/10011976900
We consider a public firm characterized by a moral hazard problem. A distinguished player is a CEO or activist shareholder who (i) is unrestricted to trade shares and (ii) has discretion to increase the value of this firm by exerting costly effort. von Lilienfeld-Toal and Rünzi (J Finance...
Persistent link: https://www.econbiz.de/10015323503
Persistent link: https://www.econbiz.de/10014381102
Business groups in emerging markets perform better than unaffiliatedfirms. One explanation is that business groups substitute some functions ofmissing institutions, for example, enforcing contracts. We investigate thisby setting up a model where firms within the business group are connectedto...
Persistent link: https://www.econbiz.de/10005861050
This study examines the financial consequences of the moral hazard of the controlling shareholder. Using a sample of Chinese listed companies during the 2003–2009 period, we find that companies characterized by a wider divergence between the controlling shareholder's control and cash flow...
Persistent link: https://www.econbiz.de/10011208886
This paper examines the choice of tools for managing a firm’s operational risks: cash reserves, insurance contracts, and financial assets under an optimal financing contract that solves moral hazard between insiders and outside investors. Risk management is valuable as it reduces the costs of...
Persistent link: https://www.econbiz.de/10010842923
This paper examines the choice of tools for managing a firm’s operational risks: cash reserves, insurance contracts, and financial assets under an optimal financing contract that solves moral hazard between insiders and outside investors. Risk management is valuable as it reduces the costs of...
Persistent link: https://www.econbiz.de/10010745872