Idiosyncratic risk, the private benefits of control and investment timing

doi:10.1016/j.econlet.2017.02.011

CORC > 上海财经大学 > 上海财经大学

	Idiosyncratic risk, the private benefits of control and investment timing
	Wen, Chunhui 1,2; Xia, Xin 2; Yang, Jinqiang 2,3
刊名	ECONOMICS LETTERS
	2017-04
卷号	153 页码:65-71
关键词	Incomplete-markets Investment timing Investor protection Agency conflicts
ISSN号	0165-1765
DOI	10.1016/j.econlet.2017.02.011
英文摘要	This paper develops an incomplete-markets model of investment timing by a firm's controlling shareholder, who is exposed to idiosyncratic risk and pursues private benefits at the expense of outside shareholders. We show that the timing of investment selected by the controlling shareholder reflects a tradeoff between his incentives to pursue private benefits and the costs of nondiversification. The firm may overinvest or underinvest depending on the magnitude of the agency conflicts. Moreover, our theoretical model predicts that increasing the cash flow ownership of the controlling shareholder will decease the total social welfare, which provides novel testable empirical implications for investment. (C) 2017 Elsevier B.V. All rights reserved.
WOS研究方向	Business & Economics
语种	英语
出版者	ELSEVIER SCIENCE SA
WOS记录号	WOS:000397836400017
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/1006]
专题	上海财经大学
通讯作者	Xia, Xin
作者单位	1.Hunan Agr Univ, Sch Econ, Changsha, Peoples R China; 2.Shanghai Univ Finance & Econ, Sch Finance, Shanghai, Peoples R China; 3.Shanghai Univ Finance & Econ, Shanghai Key Lab Financial Informat Technol, Shanghai, Peoples R China
推荐引用方式 GB/T 7714	Wen, Chunhui,Xia, Xin,Yang, Jinqiang. Idiosyncratic risk, the private benefits of control and investment timing[J]. ECONOMICS LETTERS,2017,153:65-71.
APA	Wen, Chunhui,Xia, Xin,&Yang, Jinqiang.(2017).Idiosyncratic risk, the private benefits of control and investment timing.ECONOMICS LETTERS,153,65-71.
MLA	Wen, Chunhui,et al."Idiosyncratic risk, the private benefits of control and investment timing".ECONOMICS LETTERS 153(2017):65-71.