Results 241 to 250 of about 28,575 (276)

Managerial compensation and the underinvestment problem

Economic Modelling, 2011
Abstract This paper studies the effect of managerial compensation terms on the well-known “underinvestment” incentive. We extend the Mauer and Ott (2000) real-option model of corporate expansion, and show that, when the manager maximizes the value of his compensation package (rather than equity value), the underinvestment problem can be substantially
Kiridaran Kanagaretnam, Sudipto Sarkar
openaire   +1 more source

Information Externalities, Underinvestment, and Organizational Remedies

Journal of Accounting, Auditing & Finance, 2004
We examine the interaction between inter- and intradivisional learning and organizational design. In both periods of the model, managers make investment decisions. Innovation is costly because the expected cashflows associated with innovation are lower than expected cashflows of the status quo.
Carolyn B. Levine, Michael J. Smith
openaire   +1 more source

Have we Underinvested in Education?

1994
Abstract This paper argues that there is no evidence that the economic return to schooling has been overestimated by attributing erroneously to education increased earning power caused, in fact, by ability. Moreover, there is considerable evidence that the economic return to education has been underestimated, and may be as much as 16 percent for each
openaire   +1 more source

Project Termination Decisions, Underinvestment and Overinvestment*

Contemporary Accounting Research, 2000
AbstractIn this article, I use the principal‐agent framework to examine the incentives of risk‐and work‐averse agents to work on projects that are long‐term, multistage, and subject to abandonment. Periodic applications of effort by the agent are required.
openaire   +1 more source

Risk Insurance and Underinvestment in Education

Studies in Economics and Finance, 1977
Introduction In recent years considerable attention has been given to the role of the State in the financing and provision of education. Public financing of education has, in particular, been widely justified on the grounds that there are external benefits from education (1).
openaire   +1 more source

Underinvestment and Capital Misallocation Under Sovereign Risk

Journal of International Economics
Capital and its sectoral allocation affect default incentives. Under general assumptions, default risk is decreasing in the total stock of capital and increasing in the share of capital allocated to non-tradable production. This implies that when competitive households make all investment decisions capital has two externalities: a capital-stock ...
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Underinvestment affects school nurses

Primary Health Care, 2022
openaire   +1 more source

Underinvestment in training?

2007
Randolph Sloof, Joep Sonnemans, Hessel Oosterbeek   +2 more
openaire   +1 more source

Gross underinvestment in antibacterial research

The Lancet Infectious Diseases, 2014
openaire   +3 more sources

Population aging and structural over/underinvestment

Economic Change and Restructuring, 2023
Karel Brůna, Jiří Pour
openaire   +1 more source