A revealed preference approach: To understanding corporate governance problems : evidence from Canada
Chirinko, Robert S.
- Publisher: Vienna: Institute for Advanced Studies (IHS)
E20 | G30 | Kanada | G3 | E2 | Corporate governance, Business investment, Discount rates | Abzinsung | Offenbarte Präferenzen | discount rates | Corporate Governance | business investment | Betriebliche Investitionspolitik
Empire-building by managers implies that they use a lower effective discount rate in making investment decisions. We use actual investment decisions to measure the gap between the manager’s effective discount rate and the market rate. Our empirical work is based on pane...