Abstract

http://ssrn.com/abstract=6837
 
 

Citations



 


 



The Capital Budgeting Process, Incentives and Information


Milton Harris


University of Chicago - Finance

Artur Raviv


Northwestern University - Kellogg School of Management



Abstract:     
We study the capital allocation process within firms. Observed budgeting processes are explained as a response to decentralized information and incentive problems. It is shown that these imperfections can result in underinvestment when capital productivity is high and overinvestment when it is low. We also investigate how the budgeting process may be expected to vary with firm or division characteristics such as investment opportunities and the technology for information transfer.

JEL Classification: G31

working papers series


Not Available For Download

Date posted: October 24, 1995  

Suggested Citation

Harris, Milton and Raviv, Artur, The Capital Budgeting Process, Incentives and Information. Available at SSRN: http://ssrn.com/abstract=6837

Contact Information

Milton Harris (Contact Author)
University of Chicago - Finance ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
(773) 702-2549 (Phone)
(773) 753-8310 (Fax)
HOME PAGE: http://faculty.chicagobooth.edu/milton.harris/

Chicago Booth School of Business Logo

Artur Raviv
Northwestern University - Kellogg School of Management ( email )
2001 Sheridan Road
Evanston, IL 60208
United States
847-491-8342 (Phone)
847-491-5719 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 1,086

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.281 seconds