Corporate Financial Policies under Heterogeneous Beliefs
Abstract:: This study investigates a firm’s financing, investment, and payout policies through a rational expectation equilibrium based on which managers and outside investors have heterogeneous prior beliefs. The proposed model demonstrates that managers tend to overinvest (underinvest) if the exte...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
KeAi Communications Co., Ltd.
2018-06-01
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| Series: | Journal of Management Science and Engineering |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2096232019300472 |