Irreversible investment, financing, and bankruptcy decisions in an oligopoly

Jyh Bang Jou, Tan Lee

研究成果: 雜誌貢獻期刊論文同行評審

9 引文 斯高帕斯(Scopus)

摘要

This paper examines a firm's debt level, investment timing, and investment scale choices in a continuous-time model where the output price of a good that the firm produces depends on a stochastic demand-shift variable and the total industry supply of the good. Using the simple symmetric Cournot-Nash equilibrium assumption that all firms are identical and therefore follow the same financing and investment strategies, we show that competition decreases the output price and hence encourages a firm to wait for a higher demand level before it is profitable to invest. We also demonstrate how uncertainty, bankruptcy costs, and corporate taxation affect the firm's financing and investment decisions.

原文???core.languages.en_GB???
頁(從 - 到)769-786
頁數18
期刊Journal of Financial and Quantitative Analysis
43
發行號3
DOIs
出版狀態已出版 - 9月 2008

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