Boyer, Marcel; Boyer, M. Martin; Garcia, René - In: Quarterly Journal of Finance (QJF) 03 (2013) 02, pp. 1350009-1
Seeing the firm as a nexus of activities and projects, we propose a characterization of the firm where variations in the market price of risk should induce adjustments in the firm's portfolio of projects. In a setting where managers disagree with respect to what investment maximizes value,...