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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/26298
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| Title: | Real Options in a Dynamic Agency Model, with Applications to Financial
Development, IPOs, and Business Risk |
| Authors: | Philippon, Thomas
Sannikov, Yuliy |
| Issue Date: | Oct-2007 |
| Series/Report no.: | FIN-07-010 |
| Abstract: | We study investment options in a dynamic agency model. Moral hazard
creates an option to wait and agency conflicts affect the timing of
investment. The model sheds light, theoretically and quantitatively, on
the evolution of firms’ dynamics, in particular the decline of the
failure rate and the decrease in the age of IPOs. |
| URI: | http://hdl.handle.net/2451/26298 |
| Appears in Collections: | Finance Working Papers
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