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Acharya, Viral V; Myers, Stewart C; Rajan, Raghuram G - C.E.P.R. Discussion Papers - 2009

theory of investment and dividend policy, where dividends are paid by self-interested CEOs to maintain a balance between …

Persistent link: https://www.econbiz.de/10004980207

Stock-Based Compensation and CEO (Dis)Incentives

Benmelech, Efraim; Kandel, Eugene; Veronesi, Pietro - C.E.P.R. Discussion Papers - 2007

Stock-based compensation is the standard solution to agency problems between shareholders and managers. In a dynamic rational expectations equilibrium model with asymmetric information we show that although stock-based compensation causes managers to work harder, it also induces them to hide any...

Persistent link: https://www.econbiz.de/10005124453

Agency Conflicts, Investment and Asset Pricing

Albuquerque, Rui; Wang, Neng - C.E.P.R. Discussion Papers - 2005

Corporations in many countries are run by controlling shareholders whose cash flow rights in the firm are substantially smaller than their control rights. This separation of ownership and control allows the controlling shareholders to pursue private benefits at the cost of minority investors by...

Persistent link: https://www.econbiz.de/10005497980

Corporate policies with permanent and temporary shocks

Décamps, Jean Paul; Gryglewicz, Sebastian; Morellec, Erwan - C.E.P.R. Discussion Papers - 2015

We develop a dynamic model of investment, cash holdings, financing, and risk management policies in which firms face financing frictions and are subject to permanent and temporary cash flow shocks. In this model, target cash holdings depend on the long-term prospects of the firm, implying that...

Persistent link: https://www.econbiz.de/10011168895

Venture Capital and Industrial ''Innovation''

Hirukawa, Masayuki; Ueda, Masako - C.E.P.R. Discussion Papers - 2008

impact on patent count at industry level, and this impact is larger than that of R&D expenditures. We confirm that this … measure of innovation alternative to patent count. Unlike the impact on patent count, we do not find that VC investment … and material. Therefore, our finding suggests that, at industry level, VC investment increases the patent propensity but …

Persistent link: https://www.econbiz.de/10005136420

Agency, Firm Growth and Managerial Turnover

Anderson, Ronald W.; Bustamante, Maria Cecilia; … - C.E.P.R. Discussion Papers - 2012

We study managerial incentive provision under moral hazard in a firm subject to stochastic growth opportunities. In our model, managers are dismissed after poor performance, but also when an alternative manager is more capable of growing the firm. The optimal contract may involve managerial...

Persistent link: https://www.econbiz.de/10011083381

A Model of Corporate Liquidity

Anderson, Ronald W.; Carverhill, Andrew - C.E.P.R. Discussion Papers - 2005

We study a continuous time model of a levered firm with fixed assets generating a cash flow that fluctuates with business conditions. Since external finance is costly, the firm holds a liquid (cash) reserve to help survive periods of poor business conditions. Holding liquid assets inside the...

Persistent link: https://www.econbiz.de/10005123584

The Weightless Economy in Economic Development

Quah, Danny - C.E.P.R. Discussion Papers - 1999

Can the increasing significance of knowledge-products in national income---the growing weightless economy---influence economic development? Those technologies reduce ``distance'' between consumers and knowledge production. This paper analyzes a model embodying such a reduction. The model shows...

Persistent link: https://www.econbiz.de/10005791375

Innovation, Competition, and Investment Timing

Koskinen, Yrjö; Mæland, Jøril - C.E.P.R. Discussion Papers - 2012

In our model multiple innovators compete against each other by submitting investment proposals to an investor. The investor chooses the least expensive proposal and when to invest in it. Innovators have to provide costly effort and they learn privately the cost of investing. Multiple efforts...

Persistent link: https://www.econbiz.de/10011084370

Limits of Arbitrage and Corporate Financial Policy

Massa, Massimo; Peyer, Urs; Tong, Zhenxu - C.E.P.R. Discussion Papers - 2005

timing theory, we find more equity issues and increases in investment in response to higher index addition announcement … with the market timing theory of Stein (1996) and supports a ‘limits of arbitrage’ story in which the stocks display a …

Persistent link: https://www.econbiz.de/10005661446