Real Options and Investment Incentives

• Main Author: Friedl, Gunther (Author)
• Corporate Author: SpringerLink (Online service)
• Format: Electronic eBook
• Language: English
• Published: Berlin, Heidelberg : Springer Berlin Heidelberg, 2007.
• Subjects: Finance.; Accounting.; Bookkeeping.; Finance, general.; Accounting/Auditing.

Many large corporations delegate investment decision-making authority to their divisions. Because they are better informed, divisional managers should be able to make better decisions than corporate headquarters. However, they can use this informational advantage to pursue their own interests. The o...