Endogenous longevity and the value-maximizing firm

Zsolt Becsi ()

Economics Bulletin, 2002, vol. 5, issue 7, 1-7

Abstract: We develop a simple analytical framework where the longevity of profit-maximizing firms requires costly resources. We show that a firm's longevity and value are positively related to the firm''s pricing power, cash reserves, honesty, and ratio of equity to debt financing.

Keywords: Intertemporal; Profit; Maximization (search for similar items in EconPapers)
JEL-codes: D9 E2 (search for similar items in EconPapers)
Date: 2002-12-03
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Citations: View citations in EconPapers (1)

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