Investment under profit-sharing contracts: the adverse selection case
Article Abstract:
Profit-loss sharing (PLS) arrangements have been widely criticized as hampering financial development and impeding domestic savings rates. A simple mathematical model that characterizes investment behavior under a PLS contract in an asymmetric information environment is developed to prove that a shift to the PLS model does not necessarily result in market failure. A comparison was made between the level of investment generated under the PLS model and the level generated under the first-best case. It is concluded that any inefficiency that may arise can be addressed by a government policy.
Publication Name: Managerial Finance
Subject: Business
ISSN: 0307-4358
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
An introduction to the collectible sportscard market
Article Abstract:
Sportscards can be a viable investment medium. Sportscard collecting has grown into a $5 billion market that involves a large network of dealers and price information suppliers. A look at some sportscard portfolio strategies from Mar. 1988 to Dec. 1993 reveals that the 'hot list' portfolio technique has a 50.92% annualized rate of return as against Standard and Poor 500's 9.95% rate of return over the same period.
Publication Name: Managerial Finance
Subject: Business
ISSN: 0307-4358
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
Investment potential of an individual retirement account
Article Abstract:
Individual retirement accounts (IRAs) are analyzed as an investment potential by using the internal rate of return (IRR). Tables compare IRA investments to other investments. The data show that IRAs are usually a reasonable investment, but that so many different factors come into play that each individual's case must be decided using available facts.
Publication Name: Journal of Bank Research
Subject: Business
ISSN: 0021-9215
Year: 1985
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Asymmetric information, investment banking contracts and the certification hypothesis. Liquidity, Credit Creation and International Banking
- Abstracts: Outbound Telemarketing Strategies: For Selling Small Business and Telecommunications Systems. Cutting Telecommunications Costs with Private Line Service
- Abstracts: Funds statement: why the focus has changed from working capital to cash flow. Program Results Audits
- Abstracts: Vredeling Ready to Spring Trap on the Unwary. Protecting the non-union man. Is the U.K. ready for the next phase in broadcasting?
- Abstracts: Computerized Inquiry Handling: Why you Should 'Close the Advertising Loop' Electronically