Now showing items 1-4 of 4

    • Hedging the Value of Waiting 

      Boyle, G.; Guthrie, G. (University of Canterbury. Economics., 2006)
      We analyze the optimal hedging policy of a firm that has flexibility in the timing of investment. Conventional wisdom suggests that hedging adds value by alleviating the underinvestment problem associated with capital ...
    • Holding Onto Your Horses: Conflicts of Interest in Asset Management 

      Boyle, G.; Guthrie, G.; Gorton, L. (University of Canterbury. Department of Economics and Finance, 2010)
      Racehorse trainers operate unregulated asset management businesses in which the assets owned by outside clients compete with those owned by trainers for the latter’s time, care, and attention. However, market mechanisms ...
    • Human Capital and Popular Investment Advice 

      Boyle, G.; Guthrie, G. (University of Canterbury. Department of Economics and Finance, 2005)
      Popular investment advice recommends that the stock/bond and stock/wealth ratios should rise with investor risk tolerance and investment horizon respectively, prescriptions that are difficult to reconcile with the simple ...
    • Payback without Apology 

      Boyle, G.; Guthrie, G. (University of Canterbury. Economics., 2006)
      When interest rates are uncertain, the net-present-value threshold required to justify an irreversible investment is increasing in the length of a project's payback period. Therefore, slow-payback projects should face a ...