THE INFLUENCE OF PRODUCTION TECHNOLOGY ON RISK AND THE COST OF CAPITAL

被引：18

作者：

BOOTH, L

机构：

[1] JFQA referee William Alberts, Laval University, University of Toronto, Toronto, Ontario

来源：

JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS | 1991年 / 26卷 / 01期

关键词：

D O I：

10.2307/2331246

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This paper uses a time-state-preference valuation model to examine how the firm's choice of technology and production method affects its equilibrium level of risk and, as a result, the firm's cost of capital. A fixed and flexible method of production is analyzed for a firm using a Cobb-Douglas production function. In both cases, it is found that risk and the cost of capital decrease with the level of capital intensity. Implications are drawn for the specification of empirical tests of the determinants of risk. © 1991, School of Business Administration, University of Washington. All rights reserved.

引用

页码：109 / 127

页数：19

共 20 条

[1]

BOOTH LD, 1980, J FINANC, V35, P795

[2] MARKET-STRUCTURE UNCERTAINTY AND THE COST OF EQUITY CAPITAL [J].