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Bankruptcy risk and productive efficiency in manufacturing firms

โœ Scribed by Leonardo Becchetti; Jaime Sierra


Book ID
117528510
Publisher
Elsevier Science
Year
2003
Tongue
English
Weight
253 KB
Volume
27
Category
Article
ISSN
0378-4266

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โœ David C. Rose ๐Ÿ“‚ Article ๐Ÿ“… 1992 ๐Ÿ› Springer US ๐ŸŒ English โš– 585 KB

This paper proposes a model in which firm diversification acts as an efficient form of nonpecuniary compensation for the manager. In the model diversification rewards the manager by reducing the likelihood of bankruptcy which in turn increases the expected value of his firm-specific human capital. U