The Review of Economics and Statistics Vol. 54 No. 1 1972
Managerial and Stockholder Welfare Models of Firm Expenditures
Abstract
T HIS study investigates within a comrnon analytical framework the determinants of firm expenditures o;n capital investment, research and development and dividends. Its two basic objectives relative to past work are: first, to probe more deeply into the forces determining these outlays by taking into account the interdependencies among them,' and second, to provide a framework for evaluating alternative assumptions regarding firm motivation. A firm maximizing stockholder objectives will exhibit different behavior in its expenditure decisions from one pursuing managerial goals. Consequently, two main variants of a model of firm expenditures, based on these rival concepts of motivation, are developed and tested.
- DOI
- 10.2307/1927491
- Volume
- 54
- Issue
- 1
- Pages
- 9
- Sources
- crossref openalex