The investment opportunity set: Determinants, consequences and measurement

Sanjay Kallapur, Mark A. Trombley

Research output: Contribution to journalArticle

22 Scopus citations

Abstract

Explains the concept of the investment set (IOS: i.e. chances to invest for expansion, new products, cost reduction etc.) and its effects on firm value. Reviews previous research on the theoretical relationships between IOS and optimal contracting resulting from shareholder/debtholder conflict, agency costs and performance measurement problems; and empirical research on its links with company policy on financing, dividends and compensation. Goes on to discuss research on measuring IOS by using various proxies; and summarizes the main findings.

Original languageEnglish (US)
Pages (from-to)3-15
Number of pages13
JournalManagerial Finance
Volume27
Issue number3
DOIs
StatePublished - Jan 1 2001

Keywords

  • Accounting research
  • Business policy
  • Investment
  • Measurement
  • Share prices

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Finance

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