Endogenous longevity and the value-maximizing firm

We develop a simple analytical framework where the longevity of profit-maximizing firms requires costly resources. We show that a firm's longevity and value are positively related to the firm''s pricing power, cash reserves, honesty, and ratio of equity to debt financing.

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Year of publication:	2002
Authors:	Becsi, Zsolt
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 5.2002, 7, p. 1-7
Publisher:	AccessEcon
Subject:	Intertemporal Profit Maximization

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	E2 - Consumption, Saving, Production, Employment, and Investment ; D9 - Intertemporal Choice and Growth
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005196461