Economists have found that recent earnings have larger effects on investment for small firms than for large

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Economists have found that recent earnings have larger effects on investment for small firms than for large firms. What might explain this fact?

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Money Banking and Financial Markets

ISBN: 978-1429244091

2nd edition

Authors: Laurence M. Ball

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Question Posted: Dec 05, 2015 03:45 AM

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Economists have found that recent earnings have larger effects on investment for small firms than for large

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Small firms face more severe asymmetric information problems than large firms Since ...View the full answer

Money Banking and Financial Markets

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