Author : RESEARCHER DEPARTMENT OF CHILD AND ADOLESCENT PSYCHIATRY PATRICK. BOLTON
Publisher : Forgotten Books
ISBN 13 : 9781332248551
Total Pages : 46 pages
Book Rating : 4.2/5 (485 download)
Book Synopsis Agency Problems, Financial Contracting, and Predation (Classic Reprint) by : RESEARCHER DEPARTMENT OF CHILD AND ADOLESCENT PSYCHIATRY PATRICK. BOLTON
Download or read book Agency Problems, Financial Contracting, and Predation (Classic Reprint) written by RESEARCHER DEPARTMENT OF CHILD AND ADOLESCENT PSYCHIATRY PATRICK. BOLTON and published by Forgotten Books. This book was released on 2015-08-05 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: Excerpt from Agency Problems, Financial Contracting, and Predation We present a theory of predation and competition based on agency problems in financial contracting. To mitigate incentive problems, investors will threaten not to provide further financing if the firm's performance is poor. This encourages competitors to ensure that their rivals' performance is indeed poor. Thus, an optimal contract balances the conflicting goals of deterring predation and providing incentives; predation may or may not occur in equilibrium. Our theory of rational predation differs from existing theories which view predation as an attempt to convince rivals that remaining in the industry is unprofitable; in our model, it is common knowledge that production in each period is profitable. The analysis suggests that studying the interaction between the capital and product markets can provide useful insights into both industrial organization and corporate finance. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.