| Autor: |
doc. PhDr. Michal Bauer Ph.D.,
|
| Typ: |
Články v impaktovaných časopisech |
| Rok: |
2007 |
| Číslo: |
17 |
| ISSN / ISBN: |
ISSN: 0015-1920 |
| Publikováno v: |
Czech Journal of Economics and Finance, 57(7-8), pp.382-399 |
| Místo vydání: |
Prague |
| Klíčová slova: |
attitude to risk, bankruptcy, financing, firm, soft budget constraint, uncertainty |
| JEL kódy: |
D21, D81, G32 |
| Citace: |
|
| Abstrakt: |
The paper examines the risk behavior of a competitive firm under price uncertainty. The model developed in the paper departs from Greenwald and Stiglitz (1993a), which singly implies risk-averse behavior. The incorporation of more general assumptions about a firm’s financing – access to the equity market, the possibility of a soft budget constraint – allows the identification of a broader range of determinants of a firm’s attitude toward risk and, hence, optimal output. The results indicate that price and technology are not the only important factors in a firm’s optimal output level, as is the case for the neoclassical firm. The model also demonstrates that a firm’s net worth position, managerial sensitivity to bankruptcy, access to capital market, budget constraint softness, and degree of uncertainty about future prices may play important roles toward optimal output considerations. |
