Arbeitspapier
The economics of capital allocation in firms: Evidence from internal capital markets
We analyze a unique survey dataset to examine the (micro)foundations of capital allocation in firms. Firms employ systems of interconnected measures to counteract agency problems, including layers of approval, divisional budgets, reporting requirements, and compensation schemes. When making funding decisions, top management relies heavily on top-level, nonfinancial information. However, substantial parts of the capital budget do not require top management approval as firms trade off the benefits and costs of decentralization. Even firms with active internal capital markets tilt capital allocation toward relatively even distributions. Within-firm agency problems may result in divisions' restricted access to internal capital.
- Sprache
-
Englisch
- Erschienen in
-
Series: KIT Working Paper Series in Economics ; No. 115
Klassifikation
Wirtschaft
Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Ereignis
Geistige Schöpfung
(wer)
Hoang, Daniel
Gatzer, Sebastian
Ruckes, Martin E.
Gatzer, Sebastian
Ruckes, Martin E.
Ereignis
Veröffentlichung
(wer)
Karlsruher Institut für Technologie (KIT), Institut für Volkswirtschaftslehre (ECON)
(wo)
Karlsruhe
(wann)
2018
- DOI
-
doi:10.5445/IR/1000079886
- Handle
- URN
-
urn:nbn:de:swb:90-798861
- Letzte Aktualisierung
-
20.09.2024, 08:25 MESZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Hoang, Daniel
- Gatzer, Sebastian
- Ruckes, Martin E.
- Karlsruher Institut für Technologie (KIT), Institut für Volkswirtschaftslehre (ECON)
Entstanden
- 2018
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