Contracting, Firm Investment and Potential Conicts of Interests

Dynamic Investment, Capital Structure, and Debt Overhang

We model dynamic investment, financing and default decisions of a firm, which begins its life with a collection of growth options. The firm exercises them optimally over time, and finances the costs of investment by adjusting its capital structure, which trades off the tax benefits with the distress cost of debt and the agency cost of investment distortions from potential debt overhang. Conflic...

The Impact of Corporate income Tax and Firm Size on Fixed Investment

This paper is an attempt to analyze the impact of income taxes and market capitalization on fixed investment (investment in tangible assets) by manufacturing companies listed on KSE. This paper basically examines that how corporate income taxes affect fixed investment by reducing cash flow available for a firm to invest and how the firm size in the lights of market capitalization affects fixed ...

Revolving doors and the optimal tolerance for agency collusion

In this article, I study how the presence of a revolving door and potential collusion between a regulator and a regulated firm affect the regulator's performance incentives. Contrary to the conventional wisdom, these seemingly undesirable features of the regulatory system may serve the interests of the government because (i) the regulator's efforts to enhance her industry qualifications may hav...

The Effect Of Salvage Market On Strategic Technology Choice And Capacity Investment Decision Of Firm Under Demand Uncertainty

The Relationship between Capital Investment Choice and Capital Productivity: A Test of Firm Life Cycle Theory (A Comparative Investigation of Cyclical and Non-Cyclical Companies)

According to the firm life cycle theory, companies go through certain behavioral patterns in various stages of their life. A thorough understanding and recognition of these behavioral patterns, new investment in assets and the optimal use of assets can considerably enhance the capital productivity. In the current study, the relationship between the stages of firm life cycle and capital producti...