Theoretical and Applied Economics
No. 10 / 2006 (505)
Informational Asymmetry, Sustainable Growth, Exploitation and Obligation Risks
Universitatea Tehnica de Constructii Bucuresti
Ion Stancu
Academia de Studii Economice Bucuresti
Abstract. Our paper starts from the relationship, apparently contradictory, between the better informed economic agents (managers, bankers) and the agents less informed than the first to be mentioned (the investors: shareholders and creditors). The asymmetric information concerns the company’s performance (or of its investment projects) and the company’s ability to put up with different manifestations of the risk associated with this kind of performance. Based on this asymmetric information, the better informed agents can profit, to their own advantage, from the others’ lack of information. Consequently, the signals should be sent so as to allow a clear distinction of profitable companies from unprofitable ones, signals which cannot be copied by the managers with an underperforming management: a. The sustainable growth based on retained earnings financing and also co-financed by managers; b. The degree of operational leverage to be proportional with the increase of modernizing managerial and technological expenses; c. The degree of financial leverage to be proportional with the volume of debts.
Contents
Empirical Approaches of the Public-Private Partnership in the Services of Public Utility
Informational Asymmetry, Sustainable Growth, Exploitation and Obligation Risks
Regulation Strategy in Natural Gas Sector. The Romanian Case
Indirect Instruments of Prudential Supervision
About some Entropy Aspects of Dissipative Systems
Aspects about Statistical Inference
Determinants of Business Cycle Convergence in Euro Area. The Romanian Case
The Institutional Investors and Corporate Governance
Proposal of Controlling Implementation in a Romanian Company
Endogenous Growth Paradigm. Implications for Economic Policy and Theory
Industrial Policy Approaches from Theory to Practice in European Union
Environmental Management Accounting (EMA): Reflection of Environmental Factors in the Accounting Processes through the Identification of the Environmental Costs Attached to Products, Processes and Services
Using the Agent-Based Modeling in Economic Field
Escape from the Alternative