dc.contributor.author | Chowdhury, Jaideep | en_US |
dc.date.accessioned | 2014-03-14T20:18:40Z | |
dc.date.available | 2014-03-14T20:18:40Z | |
dc.date.issued | 2008-11-05 | en_US |
dc.identifier.other | etd-11172008-150051 | en_US |
dc.identifier.uri | http://hdl.handle.net/10919/29636 | |
dc.description.abstract | The Industrial Organization literature investigates the product market decisions of a firm while the corporate finance literature explores the financing decisions of the firm. But the truth is both the financing decisions and the product market decisions are interdependent and should be modeled together to develop a better understanding of a firm's decisions. This thesis takes a step in that direction.
The manager of a firm caters to the equity holders of the firm who are protected by limited liability. Ex-ante debt is issued and at the time of product market decision, debt is exogenous. The traditional product market capital market interaction literature has argued that debt financing leads to more aggressive product market strategies. If debt is treated as endogenous and/or the switching state of nature is endogenous, it can be shown that debt financing may lead to less aggressive product market strategies. Further, if external financing consists of both debt and equity financing, it is shown that a financially constrained firm shall produce less than what it would have produced if it was not financially constrained. Finally, managerial compensation is reported to be one of the reasons for product market aggressiveness of a firm in the context of product market capital market interaction. | en_US |
dc.publisher | Virginia Tech | en_US |
dc.relation.haspart | Econ_Thesis_final1.pdf | en_US |
dc.rights | I hereby certify that, if appropriate, I have obtained and attached hereto a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee.
I hereby grant to Virginia Tech or its agents the non-exclusive
license to archive and make accessible, under the conditions specified below,
my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report. | en_US |
dc.subject | Capital Markets | en_US |
dc.subject | Financial Constraints | en_US |
dc.subject | Executive Compensation | en_US |
dc.subject | Product Markets | en_US |
dc.title | Three Essays on Product Market Capital Market Interactions | en_US |
dc.type | Dissertation | en_US |
dc.contributor.department | Economics | en_US |
dc.description.degree | Ph. D. | en_US |
thesis.degree.name | Ph. D. | en_US |
thesis.degree.level | doctoral | en_US |
thesis.degree.grantor | Virginia Polytechnic Institute and State University | en_US |
thesis.degree.discipline | Economics | en_US |
dc.contributor.committeechair | Haller, Hans H. | en_US |
dc.contributor.committeemember | Ashley, Richard A. | en_US |
dc.contributor.committeemember | Zhou, Joe Yang | en_US |
dc.contributor.committeemember | Patterson, Douglas M. | en_US |
dc.identifier.sourceurl | http://scholar.lib.vt.edu/theses/available/etd-11172008-150051/ | en_US |
dc.date.sdate | 2008-11-17 | en_US |
dc.date.rdate | 2008-12-10 | |
dc.date.adate | 2008-12-10 | en_US |