Studies from European School of Management and Technology Reveal New Findings on Management Science (Financing Capacity with Stealing and Shirking)

Investigators publish new report on Science - Management Science. According to news reporting originating in Berlin, Germany, by NewsRx journalists, research stated, “We study a firm’s capacity choice under demand uncertainty given that it must finance this investment externally. Sharing profits with investors causes governance problems affecting both capacity and demand: the firm may ‘steal’ capital, which reduces effective capacity, and ‘shirk’ on market development, which reduces demand.”