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In this paper, the Post-Kaleckian approach on financialisation which argues that investment of Nonfinancial Corporations in real capital assets has been restricted by the rising dividend and interest payments due to shareholder pressure will be criticized based on a Minskyan understanding of...
Persistent link: https://www.econbiz.de/10011515275
model in which the shareholders portfolio selection of assets and the decisions of the publicly-traded firms are integrated … shareholders substantially influences firms behavior in the real sector. After characterizing the unique equilibrium, we show that … the financial sector integrates the preferences of all shareholders into the decisions for production and ownership …
Persistent link: https://www.econbiz.de/10013082813
model in which the shareholders portfolio selection of assets and the decisions of the publicly-traded firms are integrated … shareholders substantially influences firms behavior in the real sector. After characterizing the unique equilibrium, we show that … the financial sector integrates the preferences of all shareholders into the decisions for production and ownership …
Persistent link: https://www.econbiz.de/10013092452
This paper studies the market-level effects of litigation rights in an imperfectly competitive capital market with a market maker, an information-acquiring investor, and liquidity traders. Litigation rights have the following equilibrium effects. (i) The investor acquires more private...
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