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
โฆ LIBER โฆ
Optimal bankruptcy law and firm-specific investments
โ Scribed by Elazar Berkovitch; Ronen Israel; Jaime F. Zender
- Book ID
- 117098408
- Publisher
- Elsevier Science
- Year
- 1997
- Tongue
- English
- Weight
- 712 KB
- Volume
- 41
- Category
- Article
- ISSN
- 0014-2921
No coin nor oath required. For personal study only.
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This contribution belongs to a category of papers that attempts to determine the effects of environmental regulation on the growth of an individual firm. It extends the existing literature in at least two ways. First, our pollution function explicitly deals with the fact that it is more difficult to