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| Zsolt Becsi |
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| ''Endogenous longevity and the value-maximizing firm'' |
| ( 2002, Vol. 5 No.7 ) |
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| We develop a simple analytical framework where the longevity of profit-maximizing firms requires costly resources. We show that a firm's longevity and value are positively related to the firm''s pricing power, cash reserves, honesty, and ratio of equity to debt financing. |
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| Keywords: Intertemporal Profit Maximization |
JEL: E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
D9 - Intertemporal Choice and Growth: General |
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| Manuscript Received : Dec 03 2002 | | Manuscript Accepted : Dec 03 2002 |
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