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This paper is an updated version of a previous working paper, Capital Budgeting in the Presence of Managerial Overconfidence and Optimism, by the same authors. Financial support by the Rodney L. white Center for Financial Research is gratefully acknowledged. The authors would like to thank Andrew Abel, Jonathan Berk, Domenico Cuoco, David Denis, Janice Eberly, Robert Goldstein, Peter Swan, and seminar
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the standard theory of co.apters 1 and 2 when we covered Modigliani-Miller As we discussed in the Ch apital structure that has been the mainstay of text- books is the trade-off theory This argues that the benefit of debt is the tax shield and the cost is the deadweight costs of bankruptcy. The tradi tional view was that these deadweight
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The term adverse selection comes originally from insurance applications. An insurance contract may attract high-risk individuals, with the result that the pool of insured customers may be riskier than the population at large Adverse selection is now used generically to describe situations of asymmet ric information, particularly market settings in which some individuals have private information about their characteristics and where the individuals
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Chapter 2 The Modigliani-Miller theorem \When capital markets are perfect and complete, corporate decisions are trivial.\ 2.1 Arrow-Debreu model with assets 2.1.1 Primitives
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The principal-agent problem describes a class of interactions between two parties to a contract, an agent and a principal. The legal origin of these terms suggests that the principal engages the agent to act on his(the principal s behalf. In economic applications, the agent is not necessarily an employe
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The principal-agent problem The principal-agent problem describes a class of interactions between two parties to a contract, an agent and a principal. The legal origin of these terms suggests that the principal engages the agent to act on his(the principals) behalf. In economic applications, the agent is not necessarily an employe of the principal. In fact, which of two individuals is regarded as the agent and which as the principal depends on the nature of the incentive problem
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精密机械设计的基础知识 1概论 一机器设计应满足以下要求: 1、功能要求 2、可靠性要求 3、精度要求 4、经济性要求 5、外观要求 二零件设计满足要求: 三零件的主要失效形式:
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一、单项选择题 1、道德是一种行为规范,它所包含和要解决的主要矛盾是()。 A.善与恶、正义与非正义 B.公正和偏私、诚实和虚伪 C.经济基础和上层建筑 D.个人利益和整体利益
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《电子商务概论》测试题(1) 一、说出下列电子商务英文的中文意思 8.ca9. CERNET10. CHINAGBN11. CHINANET12. CIETNET
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《电子商务导论习题集》 综合练习题 一、判断题 1、CPU中运算器( ArithmeticalUnit)的主要功能是完成对数据的算术运算、逻辑运算和 逻辑判断等操作(T)
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