This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Information, Investment Horizon, and Price Reactions Author info | Abstract | Publisher info | Download info | Related research | Statistics Thakor, Anjan V.
Additional information is available for the following
registered author(s):
This paper studies the dynamic investment policies of firms under asymmetric information.Managers make decisions to maximize the wealth of existing shareholders. In equilibrium, the superior firms invest , choosing intrinsically lower-valued projects that produce cash flows. The inferior firms follow the socially preferred rule of investing in intrinsically higher-valued projects that produce cash flows. In addition to explaining investment myopia, the model generates numerous predictions regarding announcement effects of equity issues and attempts by firms to stockpile cash, firms' preferences for limits on mandatory disclosure rules, and the effects of managerial entrenchment motives.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Article provided by Cambridge University Press in its journal Journal of Financial and Quantitative Analysis .
Volume (Year): 28 (1993)
Issue (Month): 04 (December)
Pages: 459-482
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Handle: RePEc:cup:jfinqa:v:28:y:1993:i:04:p:459-482_00Contact details of provider: Postal: The Edinburgh Building, Shaftesbury Road, Cambridge CB2 2RU UK Fax: +44 (0)1223 325150 Email: Web page: http://journals.cambridge.org/jid_JFQ
For technical questions regarding this item, or to correct its listing, contact: (Mike Eden).
Keywords: Other versions of this item:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Roll, Richard, 1986.
"The Hubris Hypothesis of Corporate Takeovers ,"
Journal of Business ,
University of Chicago Press, vol. 59(2), pages 197-216, April.
[Downloadable!] (restricted)
Shleifer, Andrei & Vishny, Robert W, 1990.
"Equilibrium Short Horizons of Investors and Firms ,"
American Economic Review ,
American Economic Association, vol. 80(2), pages 148-53, May.
[Downloadable!] (restricted)
Miller, Merton H & Rock, Kevin, 1985.
" Dividend Policy under Asymmetric Information ,"
Journal of Finance ,
American Finance Association, vol. 40(4), pages 1031-51, September.
[Downloadable!] (restricted)
Stein, Jeremy C, 1988.
"Takeover Threats and Managerial Myopia ,"
Journal of Political Economy ,
University of Chicago Press, vol. 96(1), pages 61-80, February.
[Downloadable!] (restricted)
Bhattacharya, Sudipto & Ritter, Jay R, 1983.
"Innovation and Communication: Signalling with Partial Disclosure ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 50(2), pages 331-46, April.
[Downloadable!] (restricted)
David M Kreps & Robert Wilson, 2003.
"Sequential Equilibrium ,"
Levine's Working Paper Archive
618897000000000813, David K. Levine.
[Downloadable!]
Other versions: Myers, Stewart C. & Majluf, Nicolás S., 1945-, 1984.
"Corporate financing and investment decisions when firms have information that investors do not have ,"
Working papers
1523-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
[Downloadable!]
Narayanan, M P, 1985.
" Managerial Incentives for Short-term Results ,"
Journal of Finance ,
American Finance Association, vol. 40(5), pages 1469-84, December.
[Downloadable!] (restricted)
Robert A. Korajczyk & Deborah J. Lucas & Robert L. McDonald, 1989.
"Understanding Stock Price Behavior around the Time of Equity Issues ,"
NBER Working Papers
3170, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Lucas, Deborah J & McDonald, Robert L, 1990.
" Equity Issues and Stock Price Dynamics ,"
Journal of Finance ,
American Finance Association, vol. 45(4), pages 1019-43, September.
[Downloadable!] (restricted)
Other versions: Brennan, Michael J, 1990.
" Latent Assets ,"
Journal of Finance ,
American Finance Association, vol. 45(3), pages 709-30, July.
[Downloadable!] (restricted)
Stewart C. Myers & Nicholas S. Majluf, 1984.
"Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have ,"
NBER Working Papers
1396, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
David Hirschleifer & Tarun Chordia, 1990.
"Resolution Preference and Project Choice ,"
University of California at Los Angeles, Anderson Graduate School of Management
1181, Anderson Graduate School of Management, UCLA.
[Downloadable!]
Myers, Stewart C. & Majluf, Nicholas S., 1984.
"Corporate financing and investment decisions when firms have information that investors do not have ,"
Journal of Financial Economics ,
Elsevier, vol. 13(2), pages 187-221, June.
[Downloadable!] (restricted)
Ambarish, Ramasastry & John, Kose & Williams, Joseph, 1987.
" Efficient Signalling with Dividends and Investments ,"
Journal of Finance ,
American Finance Association, vol. 42(2), pages 321-43, June.
[Downloadable!] (restricted)
Ofer, Aharon R & Thakor, Anjan V, 1987.
" A Theory of Stock Price Responses to Alternative Corporate Cash Disbursement Methods: Stock Repurchases and Dividends ,"
Journal of Finance ,
American Finance Association, vol. 42(2), pages 365-94, June.
[Downloadable!] (restricted)
Other versions: Banks, Jeffrey S & Sobel, Joel, 1987.
"Equilibrium Selection in Signaling Games ,"
Econometrica ,
Econometric Society, vol. 55(3), pages 647-61, May.
[Downloadable!] (restricted)
Other versions: Holmstrom, Bengt & Ricart i Costa, Joan, 1986.
"Managerial Incentives and Capital Management ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 101(4), pages 835-60, November.
[Downloadable!] (restricted)
Ronald M. Giammarino, Tracy Lewis, 1988.
"A Theory of Negotiated Equity Financing ,"
Review of Financial Studies ,
Oxford University Press for Society for Financial Studies, vol. 1(3), pages 265-288.
[Downloadable!] (restricted)
Bhattacharya, Sudipto, 1980.
"Nondissipative Signaling Structures and Dividend Policy ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 95(1), pages 1-24, August.
Thakor, Anjan V, 1990.
"Investment "Myopia" and the Internal Organization of Capital Allocation Decisions ,"
Journal of Law, Economics and Organization ,
Oxford University Press, vol. 6(1), pages 129-54, Spring.
Bronwyn H. Hall, 1988.
"The Effect of Takeover Activity on Corporate Research and Development ,"
NBER Chapters ,
in: Corporate Takeovers: Causes and Consequences, pages 69-100
National Bureau of Economic Research, Inc.
[Downloadable!]
Other versions: McDonald, Robert & Siegel, Daniel, 1986.
"The Value of Waiting to Invest ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 101(4), pages 707-27, November.
[Downloadable!] (restricted)
Asquith, Paul & Mullins, David Jr., 1986.
"Equity issues and offering dilution ,"
Journal of Financial Economics ,
Elsevier, vol. 15(1-2), pages 61-89.
[Downloadable!] (restricted)
McConnell, John J. & Muscarella, Chris J., 1985.
"Corporate capital expenditure decisions and the market value of the firm ,"
Journal of Financial Economics ,
Elsevier, vol. 14(3), pages 399-422, September.
[Downloadable!] (restricted)
Boot, Arnoud W A, 1992.
" Why Hang on to Losers? Divestitures and Takeovers ,"
Journal of Finance ,
American Finance Association, vol. 47(4), pages 1401-23, September.
[Downloadable!] (restricted)
Masulis, Ronald W. & Korwar, Ashok N., 1986.
"Seasoned equity offerings : An empirical investigation ,"
Journal of Financial Economics ,
Elsevier, vol. 15(1-2), pages 91-118.
[Downloadable!] (restricted)
Kohlberg, Elon & Mertens, Jean-Francois, 1986.
"On the Strategic Stability of Equilibria ,"
Econometrica ,
Econometric Society, vol. 54(5), pages 1003-37, September.
[Downloadable!] (restricted)
Hirshleifer, David & Thakor, Anjan V, 1992.
"Managerial Conservatism, Project Choice, and Debt ,"
Review of Financial Studies ,
Oxford University Press for Society for Financial Studies, vol. 5(3), pages 437-70.
[Downloadable!] (restricted)
Krasker, William S, 1986.
" Stock Price Movements in Response to Stock Issues under Asymmetric Information ,"
Journal of Finance ,
American Finance Association, vol. 41(1), pages 93-105, March.
[Downloadable!] (restricted)
Smith, Clifford Jr., 1977.
"Alternative methods for raising capital : Rights versus underwritten offerings ,"
Journal of Financial Economics ,
Elsevier, vol. 5(3), pages 273-307, December.
[Downloadable!] (restricted)
Besanko, David & Thakor, Anjan V., 1987.
"Competitive equilibrium in the credit market under asymmetric information ,"
Journal of Economic Theory ,
Elsevier, vol. 42(1), pages 167-182, June.
[Downloadable!] (restricted)
Other versions: Hirshleifer, David & Suh, Yoon, 1992.
"Risk, managerial effort, and project choice ,"
Journal of Financial Intermediation ,
Elsevier, vol. 2(3), pages 308-345, September.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Mehdi Nekhili & Evelyne Poincelot, 2000.
"La fonction R&D et la latitude managériale:une analyse théorique ,"
Working Papers FARGO
1000303, Université de Bourgogne - Latec/Fargo (Research center in Finance,organizational ARchitecture and GOvernance).
[Downloadable!]
Other versions: Dietmar Harhoff, 1998.
"Are there Financing Constraints for R&D and Investment in German Manufacturing Firms ,"
Annales d'Economie et de Statistique ,
ADRES, issue 49-50, pages 17, Janvier-J.
[Downloadable!]
Other versions: Simon Grant & Stephen King & Ben Polak, 1995.
"Information Externalities, Share-Price Based Incentives and Managerial Behaviour ,"
Cowles Foundation Discussion Papers
1107, Cowles Foundation, Yale University.
[Downloadable!]
Other versions:
Grant, Simon & King, Stephen & Polak, Ben, 1996.
" Information Externalities, Share-Price Based Incentives and Managerial Behaviour ,"
Journal of Economic Surveys ,
Blackwell Publishing, vol. 10(1), pages 1-21, March.
Access and
download statistics Did you know? LogEc provides statistical analysis about downloads from this service (and others).
This page was last updated on 2009-11-23.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .