Joshua Mitts
What Can we Learn from Stock Prices?: Cash Flow, Risk, and Shareholder Welfare
Veröffentlicht auf Englisch.
- Artikel PDF
- lieferbar
- 10.1628/jite-2019-0009
Aufgrund einer Systemumstellung kann es vorübergehend u.a. zu Zugriffsproblemen kommen. Wir arbeiten mit Hochdruck an einer Lösung. Wir bitten um Entschuldigung für die Umstände.
Beschreibung
Personen
Rezensionen
Beschreibung
Price is expected cash flows discounted at the risk-free rate plus an additional discount for risk exposure. Price equivalency does not always imply welfare equivalency: shareholders are not necessarily indifferent between a price increaseof $1 from higher cash flows and the same $1 increase from lower risk exposure. Even in complete markets, if managers enjoy private benefits of control, the social planner may prefer lower risk exposure to a price-equivalent increase in firm value from greater investor protection. This has implications for event studies, the trade-off between principal costs and agency costs, and the link between macroeconomic risk and corporate governance.