WebAug 4, 2014 · Abstract. We analyze a dynamic bargaining game in which a seller and a buyer negotiate over quantity and payment to trade for a product. Both firms are impatient, and they make alternating offers until an agreement is reached. The buyer is privately informed about his type, which can be high or low: the high type's demand is … WebWe propose a tractable model of a rm’s dynamic debt and equity issuance poli-cies in the presence of asymmetric information. Because \investment-grade" rms can access …
Asymmetric Information in Economics Explained
WebJan 1, 2007 · Dynamic Investment Appraisal. 16YTM is the internal rate of return on a bond held to maturity, assuming payment of principal and interest, which takes into … Web\Dynamic Information Asymmetry, Financing, and Investment Decisions" Not for Publication Ilya A. Strebulaev Haoxiang Zhuy Pavel Zryumovz January 21, 2014 1 A Two-Period Model with Cash Accumulation InStrebulaev, Zhu, and Zryumov(2014, SZZ), we have assumed that all the cash generated by the rm prior to investment is paid out to … ifs fiscal studies
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WebApr 28, 2024 · Asymmetry of information is important in the investment decision-making process. The paper (Llorente et al. 2002 ) presents a dynamic model whose parameter … WebMar 23, 2024 · 1. Introduction. The consequences of information asymmetry in financial markets are a long-standing concern in accounting and finance research (Merton 1987, Diamond and Verrecchia 1991).A central theme of these studies is that information asymmetry can lead to an increase in the cost of capital or even an inability to attract … WebMay 1, 2008 · This paper develops a dynamic model of the financing and operating decisions of firms in the presence of information asymmetry. When the value of growth opportunities is not fully recognized, securities are undervalued, thus influencing the financing and investment decisions. The agency‐based underinvestment problem is … ifs fire and safety corpus christi