Results 221 to 230 of about 28,575 (276)

Underinvestment and Market Structure [PDF]

open access: yes, 1998
This paper analyses a dynamic game of investment in R&D or advertising, where current investments change future market conditions. It investigates whether underinvestment can be supported in equilibrium by the threat of escalation in investment outlays.
Volker Nocke
openaire   +3 more sources

Underinvestment in Public Good Technologies

Journal of Technology Transfer, 2004
Although underinvestment phenomena are the rationale for government subsidization of research and development (R&D), the concept is poorly defined and its impact is seldom quantified. Conceptually, underinvestment in industrial R&D can take the form of either a wrong amount or a suboptimal composition of R&D investment.
exaly   +2 more sources

Societal trust and corporate underinvestment

Global Finance Journal, 2022
Andreas Knetsch
exaly   +2 more sources

The Underinvestment Problem, Bond Covenants, and Insurance [PDF]

open access: possibleThe Journal of Risk and Insurance, 1993
Introduction The underinvestment problem has been well known in finance since the appearance of Myers's (1977) seminal work on "The Determinants of Corporate Borrowing." Myers considers a situation in which the firm has an outstanding bond issue now and may invest in a positive net present value project then.(1) The payoff on the investment project is ...
James R. GARVEN, Richard D. MACMINN
openaire   +1 more source

Corporate control and underinvestment

Journal of Management & Governance, 2011
This paper reports a study of how the benefits that large shareholders derive from their control of a firm affect the equity issue and investment decisions of the firm. I introduce an explicit agency cost structure based on the benefits of control of the largest shareholder.
openaire   +1 more source

OPERATING LEVERAGE AND UNDERINVESTMENT

Journal of Financial Research, 2019
AbstractUsing a contingent claims model, we examine the impacts of both operating leverage and financial leverage on a firm's investment decisions in the context of capacity expansion. Our model shows that quasi‐fixed operating costs could significantly mitigate the underinvestment problem for debt‐financed firms.
Feng Jiao   +2 more
openaire   +1 more source

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