Creditor Intervention, Investment, and Growth Opportunities

Arbitrage and investment opportunities

We consider a model in which any investment opportunity is described in terms of cash flows. We don’t assume that there is a numéraire, enabling investors to transfer wealth through time; the time horizon is not supposed to be finite and the investment opportunities are not specifically related to the buying and selling of securities on a financial market. In this quite general framework, we sh...

Investment Opportunities in Ghana

Production of improved varieties of cotton for export and local consumption, establishment of ginneries, farm to plant transport services, storage and handling facilities, production of chemicals including natural dyes, industrial starch, caustic soda, hydrochlorides and other finishing chemicals as well as production of textiles. Cotton production has been selected as one of the special Presid...

Valuing Changes in Investment Opportunities

Saving, Investment, and Growth: A Causality Test

In the second half of the last century, tremendous efforts were devoted to identifying sources of economic success by a few countries and causes of failure by most. In this process a voluminous literature ranging from the neo-classical to Marxist, neo-Marxist, and dependency theories has been developed to answer the question of disparity among different countries of the north vis-à-vis those of...

Investment Opportunities, Liquidity Premium, and Conglomerate Mergers

This paper analyzes the implications of diversification strategies and conglomerate mergers for the cost of capital in a model where the cost of capital depends on liquidity. We show that in a finitely liquid market with asymmetrically informed investors, both the benefits and the costs of diversification can be related to two characteristics of a firm’s investment opportunities. The benefits c...