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Strategic learning and corporate investment

Décaire, Paul H.; Wittry, Michael D. - 2022

1800s that shapes the number of peers that a firm can learn from today. The strategic learning incentive is most salient …

Persistent link: https://www.econbiz.de/10012816427

Optimal Learning, Overvaluation and Overinvestment

Barbosa, António M.R.G. - 2019

optimal way to learn about the returns to scale. The optimal learning is also shown to produce overvaluation. The model is …

Persistent link: https://www.econbiz.de/10012858579

Investment Dynamics and Earnings-Return Properties : A Structural Approach

Breuer, Matthias - 2019

We propose the standard neoclassical model of investment under uncertainty with short-run adjustment frictions as a benchmark for earnings-return patterns absent accounting influences. We show that our proposed benchmark generates a wide range of earnings-return patterns documented in accounting...

Persistent link: https://www.econbiz.de/10012902450

Anti-Takeover Provisions and Investment Timing

Guthrie, Graeme - 2019

We show how directors can set the strength of a firm's anti-takeover provisions in order to influence the investment-timing decision of a future empire-building CEO. The prospect of future hostile takeover attempts, which terminate the CEO's control benefits if successful, affects the CEO's...

Persistent link: https://www.econbiz.de/10012892376

Optimal Investment, Tobin's q, and Cash Flow : Does Unobserved Productivity Matter?

Kim, Kyoo il; Song, Suyong; Wang, Jiawei (Brooke) - 2021

Abstract We study the classical relationship between a firm’s investment and Tobin’s q for which unobserved productivity is another factor of a firm’s decision. Besides the potential measurement problem of Tobin’s q, controlling unobserved productivity is a new challenge. We develop an...

Persistent link: https://www.econbiz.de/10013218365

Time-to-Build and Capacity Expansion

Jeon, Haejun - 2021

the follow-up investment can be shorter than those of the initial project due to learning by doing. We derive the optimal … each project, however, is non-monotone with respect to the size of the lags. We can endogenize the degree of learning by … doing based on the proportion of capacity in each stage of the investment. Endogenous learning by doing is found to be non …

Persistent link: https://www.econbiz.de/10013242659

Investment Dynamics and Earnings-Return Properties : A Structural Approach

Breuer, Matthias - 2019

We propose the standard neoclassical model of investment under uncertainty with short‐run adjustment frictions as a benchmark for earnings‐return patterns absent accounting influences. We show that our proposed benchmark generates a wide range of earnings‐return patterns documented in...

Persistent link: https://www.econbiz.de/10012867279

Downward Wage Rigidity, Corporate Investment, and Firm Value

Cho, DuckKi - 2018

Firms reduce investment when facing downward wage rigidity (DWR), the inability or unwillingness to adjust wages downward. I construct DWR measures and exploit staggered state-level changes in minimum wage laws as an exogenous variation in DWR to document this fact. Following a one standard...

Persistent link: https://www.econbiz.de/10012935544

Investment Flexibility as a Barrier to Entry

Guthrie, Graeme A. - 2020

This paper presents a model of investment in a duopoly with firms that choose the scale and timing of investment. Decision-making flexibility and the costs saved by investing in large steps rather than sequences of small steps determine an incumbent's ability to deter entry by a potential...

Persistent link: https://www.econbiz.de/10012853973

Classes of homogeneous financing constraints and corporate investment

Iona, Alfonsina; Leonida, Leone - 2024 - This version: 09 October 2024

Does corporate finance literature accurately identify firms facing homogeneous financing constraints when studying the impact of financing constraints on corporate investment? The short answer is no. The common practice of using pre-determined percentiles of a financing constraint metric...

Persistent link: https://www.econbiz.de/10015095119