The investment opportunity set: determinants, consequences and measurement
Abstract
Explains the concept of the investment set (IOS: i.e. chances to invest for expansion, new products, cost reduction etc.) and its effects on firm value. Reviews previous research on the theoretical relationships between IOS and optimal contracting resulting from shareholder/debtholder conflict, agency costs and performance measurement problems; and empirical research on its links with company policy on financing, dividends and compensation. Goes on to discuss research on measuring IOS by using various proxies; and summarizes the main findings.
Keywords
Citation
Kallapur, S. and Trombley, M.A. (2001), "The investment opportunity set: determinants, consequences and measurement", Managerial Finance, Vol. 27 No. 3, pp. 3-15. https://doi.org/10.1108/03074350110767060
Publisher
:MCB UP Ltd
Copyright © 2001, MCB UP Limited