The weighted average cost of capital over the lifecycle of the firm: is the overinvestment problem of mature firms intensified by a higher WACC?

Firm lifecycle theory predicts that the Weighted Average Cost of Capital (WACC) will tend to fall over the lifecycle of the firm (Mueller, 2003, p. 80-81). However, given that previous research finds that corporate governance deteriorates as firms get older (Mueller and Yun, 1998; Saravia, 2014) the...

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Autores:

García, Carlos S
Saravia, Jimmy A
Yepes, David A

Tipo de recurso:

Fecha de publicación:

2015

Institución:

Universidad EAFIT

Repositorio:

Repositorio EAFIT

Idioma:

eng

OAI Identifier:

oai:repository.eafit.edu.co:10784/7762

Acceso en línea:

http://hdl.handle.net/10784/7762

Palabra clave:

WACC
firm lifecycle
corporate governance
overinvestment
CMPC
ciclo de vida de la firma
gobierno corporativo
sobreinversión

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