This study examines optimal environmental regulations and firms' responses under three production scenarios. The government's objective is to maximize social welfare by selecting the type and intensity of regulatory instruments, while firms seek to optimize profits by adjusting their optimal production ...
•Stockpricesareareflectionofacompany‟sprofitability.Ifmanagersdonotseektomaximizeprofits,stockpricesfallandfirmsaresubjecttotakeoverbidsandproxyfights.•Thecompensationofmanyexecutivesistiedtostockprice.TheGoaloftheFirm •Othergoalsthatthefirmmightpursue:•Thesizeofthefirm•customersatisfaction•workplace...
The firm's objective is to maximize profits by choosing both the scale and scope of production, as well as choosing how much to invest in enhancing the quality of individual varieties and of its overall brand. We begin by abstracting from the quality dimension in this sub-section, and ...
startup firms (“startups” hereafter) that raise venture capital (VC) financing choose to organize as C-corporations (C-corps), where the firm pays corporate taxes as a separate entity and investors pay tax a second time on distributed profits. This imposes significant tax costs, as these ...
There are a number of different theories that seek to explain the debt-equity decision. However, as stated above, none of them are able to fully explain the apparent under-use of the benefits of debt. The trade-off theory of capital structure states that firms should pursue a given debt ...
Would a company hire more workers if the MRP is greater than the wage rate (i.e., the price of the labor)? Why or why not? Explain in terms of trying to maximize profits. When will a minimum wage decrease employment? (a) Always. (b) When str...
Act or Clayton Act. The FTC has thus tried to maximize its discretion and flexibility to bring Section 5 cases, regardless of whether there is an underlying antitrust violation. Injunctive Relief Under Section 13(b) of the FTC Act.Private equity sponsors that hold controlling interes...
The FTC has thus tried to maximize its discretion and flexibility to bring Section 5 cases, regardless of whether there is an underlying antitrust violation. Injunctive Relief Under Section 13(b) of the FTC Act. Private equity sponsors that hold controlling interests in, or have substantial ...
to create a sustainable society (Khan et al.,2021a). I4.0 has introduced emerging technologies that helped manufacturing firms maximize their output and improve resource utilization (Kamble et al.2018). This huge economic and sustainability potential of I4.0 has led industrial firms to increase ...
maximize their utility by growing the size of their firms, to signal their talent in the market for managers, and to achieve a higher compensation linked to firm size, instead of the shareholders’ target of profit maximization. An effective way to re-align the divergent interests of managers ...