Abstract

http://ssrn.com/abstract=7620
 
 

Citations



 


 



The Capital Budgeting Process, Incentives and Information


Milton Harris


University of Chicago - Finance

Artur Raviv


Northwestern University - Kellogg School of Management


J. OF FINANCE, Vol. 51 No. 4, September 1996

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

Accepted Paper Series





Not Available For Download

Date posted: July 15, 1996  

Suggested Citation

Harris, Milton and Raviv, Artur, The Capital Budgeting Process, Incentives and Information. J. OF FINANCE, Vol. 51 No. 4, September 1996. Available at SSRN: http://ssrn.com/abstract=7620

Contact Information

Milton Harris
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 (Contact Author)
Northwestern University - Kellogg School of Management ( email )
2001 Sheridan Road
Evanston, IL 60208
United States
847-491-8342 (Phone)
847-491-5719 (Fax)
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