When firms are endowed with volume flexibility, capacity investment may influence the subsequent production process via affecting structure of cost. Yet, strategic interaction between and decisions has not been adequately addressed. In this paper, we consider two serving one market under price sensitive uncertain demand. Firms incur costs to build produce. The firm’s affects cost through its on...

In this paper we quantitatively investigate the boom and the bust of the Japanese economy during 1980–2000 using the business cycle accounting technique. This method helps us identify the distortion margins called ''wedges'' that played a significant role in accounting for the output fluctuations. Applying our model to Japan, we find that efficiency and investment wedges can almost wholly accou...

This paper develops a unified framework to analyze the dynamics of firm investment in countries with poor legal enforcement. The firm’s technology edge over the government generates endogenous property rights. Industry variation in the technology gap predicts a sectoral pecking-order of expropriations. Long-run investment distortions may be Pareto superior relative to persistent investment at t...

In this paper, we investigate how the accounting measurement basis affects the capital market pricing of a firm’s shares, which, in turn, affects the efficiency of the firm’s investment decisions. We distinguish two broad bases for accounting measurements: input-based and output-based accounting. We argue that the structural difference in the two measurement bases leads to a systematic differen...

The paper adopts from the investment behavior theory and studies the affecting factors of financial investors in investment decision-making and the investment fund behavioral deviation. At the same time, the thesis also analyzes the efficiency of asset allocation and investment behavior of China's securities investment funds, and studies its impact on China's securities market. On the basis of ...

Abstract This study examines the efficiency of investment trust companies (ITCs) from 2011 to 2020 using a meta-frontier two-stage network data envelopment analysis (DEA) based on directional distance function (DDF). We improved accuracy measurement and added network-based ranking component rank top-performing entities. In group-specific technology assessment, foreign ITCs excel in efficiency. ...