Reputation, Information and Project Termination in Capital Budgeting
作者:
JOHN DOBSON,
ROBERT DORSEY,
期刊:
The Engineering Economist
(Taylor Available online 1993)
卷期:
Volume 38,
issue 2
页码: 143-152
ISSN:0013-791X
年代: 1993
DOI:10.1080/00137919308903093
出版商: Taylor & Francis Group
数据来源: Taylor
摘要:
The Net Present Value (NPV) rule of financial theory gives management a decisive criterion for choosing between abandonment versus continuation of capital projects. There is extensive evidence, however, that management chooses to delay the abandonment of unprofitable projects. This paper attempts to explain management's reluctance to abide by the NPV criterion. The concept of a Reputation Adjusted Net Present Value is introduced in an environment where management knows more about the true value of a project than do stakeholders. The model indicates that, in such an environment, the continuation of a negative NPV project may maximize firm value.
点击下载:
PDF (326KB)
返 回