ABSTRACT

This paper introduces time-inconsistent preferences into the standard model of capacity choice and investigates its influences on entrepreneurial firms' investment decisions and asset returns. With time-inconsistent preferences, the entrepreneurial firm's expansion decision becomes more conservative. In addition, we find the value reduction caused by time-inconsistent preferences is more substantial in growth opportunities than assets in place. For asset returns, we show that time inconsistency lowers the beta of the firm through the channel of growth opportunities since the beta of assets in place is not affected by time-inconsistent preferences. Finally, the impacts on the capacity choice, firm value and asset returns also depend on such factors as whether entrepreneurs are sophisticated or naive in their expectations regarding future time-inconsistent behavior.

摘要

本文将时间不一致的偏好引入能力选择的标准模型中，并研究其对创业公司投资决策和资产收益的影响。在时间不一致的偏好下，创业公司的扩张决策变得更加保守。此外，我们发现，时间不一致的偏好导致的价值降低在增长机会中比在位资产更为显着。对于资产收益率，我们表明时间不一致会通过增长机会的渠道降低企业的beta，因为现有资产的beta不受时间不一致的偏好的影响。最后，对容量选择的影响，