Capital Budgeting and Initial Cash Outlay(ICO) Uncertainty (Management Project)

According to recent surveys, most companies use discounted-cash-flow (DCF) methods to evaluate capital budgeting decisions. DCF methods typically assume that a project’s initial cash outlay (ICO) is known with certainty. However, many types of initial outlays have substantial uncertainty, especially those involving the construction of a new facility. This risk affects not only the ICO, but it also affects subsequent […]

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Human Capital, Social Capital and Executive Compensation (Management Project)

Prior research has identified the manner in which human capital, social capital, and other intangible resources create value for organizations. Among such resources, those contributed by a firm’s top managers have been singled out as particularly important for the generation and preservation of competitive advantage. However, the costs incurred to gain access to these resources, which reside at the individual […]

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Do Investor Capabilities Influence the Interpretation of Entrepreneur Signals? Theory and Testing in the Private Equity Setting (Management Project)

Informing outsiders of the potential and quality of the organization in a way that will benefit the organization and avoid putting it at risk is a challenging task in competitive settings. Under conditions of uncertainty, in which external entities are imperfectly informed about the organization, outsiders will seek for alternative signals of quality. Current research of interfirm signaling has focused […]

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