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Bankruptcy risk and impaired investment decisions
Author(s) -
Schnabel Jacques A.,
Frank Jonathan
Publication year - 1984
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090050310
Subject(s) - bankruptcy , investment (military) , investment decisions , actuarial science , business , economics , microeconomics , finance , behavioral economics , law , politics , political science
This paper examines situations where the firm's investment decisions are impaired due to the presence of bankruptcy risk. Two situations are examined, one in which the firm is motivated to reject a positive NPV project and another in which the firm is motivated to accept a negative NPV project.