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Production inflexibility together with product price uncertainty creates price risk, which is a potentially important factor for firms' liquidity management. One industry for which price risk can be measured is the electricity producing industry. We use data on hourly electricity prices in 41...
Persistent link: https://www.econbiz.de/10012455247
This paper examines distortions in corporate investment decisions when a new project changes firm risk. It presents a dynamic model in which a self-interested, risk-averse manager makes investment decisions at a levered firm. The model, calibrated using data from public firms, is used to...
Persistent link: https://www.econbiz.de/10012469952
Persistent link: https://www.econbiz.de/10011367354
Production inflexibility together with product price uncertainty creates price risk, which is a potentially important factor for firms' liquidity management. One industry for which price risk can be measured is the electricity producing industry. We use data on hourly electricity prices in 41...
Persistent link: https://www.econbiz.de/10012955945
Persistent link: https://www.econbiz.de/10011669453
Persistent link: https://www.econbiz.de/10011619966
This paper examines distortions in corporate investment decisions when a new project changes firm risk. It presents a dynamic model in which a self-interested, risk-averse manager makes investment decisions at a levered firm. The model, calibrated using data from public firms, is used to...
Persistent link: https://www.econbiz.de/10012787353
Persistent link: https://www.econbiz.de/10014474912
Persistent link: https://www.econbiz.de/10014475667
Persistent link: https://www.econbiz.de/10001476940