We present a competitive industry equilibrium model in which managerial scarcity affects the joint determination of firm boundaries and internal decision-making structures. Integration through asset sale grants authority to a manager, who may choose to delegate decision making back to his subordinates, or to retain control for himself, depending on his comparative advantage in coordinating acti...

This paper investigates the impact of asset liquidity on the valuation of corporate securities and the firm’s financing decisions. I show that asset liquidity increases debt capacity only when bond covenants restrict the disposition of assets. By contrast, I demonstrate that, with unsecured debt, greater liquidity increases credit spreads on corporate debt and reduces optimal leverage. The mode...

This essay outlines the moral dilemma of funding orphan drug research and development. To date, ethical aspects of priority setting for research funding have not been an issue of discussion in the bioethics debate. Conflicting moral obligations of beneficence and distributive justice appear to demand very different levels of funding for orphan drug research. The two types of orphan disease, rar...

The Political Parties, Elections and Referendums Act 2000 marked the most comprehensive and radical overhaul of British party finance for over 100 years. It instituted reforms in many areas with the notable exception of the comprehensive extension of state funding for political parties. However, despite the radicalism of the Act, questions have already arisen as to whether the further state fun...

The following information is missing from the Funding section: “Additional funding from Pfizer Investigator-initiated research (IIR) Grant, 2009 & Pfizer Antibacterial EUROPE ASPIRE 2010.” The complete, correct Funding section is: “Nis Jørgensen is supported by a PhD grant from the Faculty of Health Science, University of Aarhus, Denmark. Additional funding from Pfizer Investigator-initiated re...

This essay outlines the moral dilemma of funding orphan drug research and development. To date, ethical aspects of priority setting for research funding have not been an issue of discussion in the bioethics debate. Conflicting moral obligations of beneficence and distributive justice appear to demand very different levels of funding for orphan drug research. The two types of orphan disease, rar...

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The paper presents a model in which credit-constrained firms might delay the adoption of new and more productive technologies because of the very high external financing costs they face. Our point of departure is that the efficiency of the banking system can have a profound impact on real resource and investment allocation not only directly, by reducing the amount of resources channelled to the...

Article history: Received 22 December 2008 Received in revised 4 February 2009 Accepted 6 February 2009 Available online 20 February 2009 This article integrates an earnings-based capital structure model into a simple real options framework to analyze the effects of managerial optimism and overconfidence on the interaction between financing and investment decisions. Several empirical implicatio...

Article history: Received 1 April 2011 Received in revised form 21 June 2012 Accepted 12 August 2012 Available online 30 August 2012 Notwithstanding their many environmental, economic and social advantages, renewable energy technologies (RE) account for a small fraction of the world's primary energy supply. One possible cause for this limited diffusion is that private investments in the RE sect...