Image of A q Theory of Internal Capital Markets

A q Theory of Internal Capital Markets

We propose a tractable model of dynamic investment, spinoffs, financing, and risk management for a multidivision firm facing costly external finance. Our analysis formalizes the following insights: (i) Within-firm resource allocation is based not only on divisions' productivity, as in winner-picking models, but also their risk; (ii) firms may voluntarily spin off productive divisions to increase liquidity; (iii) diversification can reduce firm value in low-liquidity states, as it increases the spinoff cost and hampers liquidity management; (iv) corporate socialism makes liquidity less valuable; and (v) division investment is determined by the ratio between marginal
and marginal value of cash

Ketersediaan
Call NumberLocationAvailable
PSB lt.2 - Karya Akhir (Koleksi Majalah)1
Informasi Detail
Judul Seri
-
No. Panggil
-
Penerbit
USA : The American Finance Association.,
Deskripsi Fisik
ill, chart, table, grafik, 924 hal, 20 cm
Bahasa
English
ISBN/ISSN
1540-6261
Klasifikasi
NONE
Tipe Isi
-
Tipe Media
-
Tipe Pembawa
-
Edisi
Volume 79, Issue 2, April 2024, Pages 1147-1197
Subjek
Investments
Risk management
Capital markets
Liquidity management
Spinoffs
Info Detail Spesifik
The Journal of Finance
Pernyataan Tanggungjawab
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Tidak tersedia versi lain

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