Dynamic agency and investment theory with time-inconsistent preferences

被引：18
|
作者：
Liu, Bo [1 ]
Mu, Congming [2 ]
Yang, Jinqiang [3 ]
机构：
[1] Univ Elect Sci & Technol China, Sch Management & Econ, Chengdu 611731, Sichuan, Peoples R China
[2] Shanghai Univ Finance & Econ, Sch Finance, Shanghai 200433, Peoples R China
[3] Shanghai Univ Finance & Econ, Shanghai Key Lab Financial Informat Technol, Sch Finance, Shanghai 200433, Peoples R China
来源：
FINANCE RESEARCH LETTERS | 2017年 / 20卷
基金：
中国国家自然科学基金;
关键词：
Principal-agency problem; q Theory; Under-investment; Time-inconsistent preferences; Cash payout; CORPORATE-INVESTMENT; CAPITAL STRUCTURE; TOBINS Q; OVERCONFIDENCE; MODEL;
D O I：
10.1016/j.frl.2016.09.017
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We incorporate managers' time-inconsistent preferences into the DeMarzo et al. (2012) model of dynamic agency and the q theory of investment. Our model provides an alternative explanation for underinvestment from the perspective of managers' time inconsistency. It also shows that firms prefer delaying a cash payout due to managers' time inconsistent preferences, and the corresponding distorted investment and payout decisions significantly decrease a firm's average q and marginal q. (C) 2016 Elsevier Inc. All rights reserved.
引用
收藏
页码：88 / 95
页数：8
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