The US business sector has under-invested relative to Tobin’s Q since the early 2000s. We argue that declining competition is partly responsible for this phenomenon. We use a combination of natural experiments and instrumental variables to establish a causal relationship between competition and investment. Within manufacturing, we use Chinese imports as a natural experiment to test the main pre...

I offer a theory of joint ownership by extending the standard property right theory of the firm to situations where parties can endogenously choose the degree of specificity of their investments (i.e., both the type of investment—specific and general—and the level of each). When specific and general investments are complements, the standard GHM results are obtained and joint ownership is subopt...

This paper examines the interaction between investment and financing decisions of a firm using a real options approach. The firm is endowed with a perpetual option to invest in a project at any time by incurring an irreversible investment cost at that instant. The amount of the irreversible investment cost is directly related to the intensity of investment that is endogenously chosen by the fir...

paper studies the impact of the liquidity, underpricing and ownership up on both the short term and long term performance of the initial public offer (ipo) stocks in the equity markets of india. empirical analysis is undertaken to study the impact of liquidity, underpricing and ownership on performance of ipo stocks. multiple regression analysis is undertaken for analyzing the impact. it is fou...

This study critically examines the relevance of the perceived notions of localised production linkages, knowledge spillover and external technology transfer to the experiences of the growth of the ICT industry in China. The research is based on a major firm-level survey conducted in China’s three most important mega urban regions—Beijing, Shanghai-Suzhou and Shenzhen-Dongguan—where the bulk of ...

Investment efficiency shows how well a company invests its assets. Although institutional shareholders play undeniable roles in companies, it is not clear whether they are able to monitor managers and make investment decisions or not. This study gives answers stakeholders, addresses concerns about the effect of owners on efficiency, aims add literature emerging markets by investigating relation...