Investment opportunity set

(redirected from Investment Opportunity Sets)

Investment opportunity set

The universe of choices as to investments available to an individual or corporation.

Investment Opportunity Set

All of the investments that a person or company is able to make at a given point in time. What determines an individual investment opportunity set is largely what the investor is able to afford, whether through equity financing, debt financing, venture capital, or even personal savings.
References in periodicals archive ?
One of the great value managers, Seth Klarman of Baupost, puts it this way: " To T assume the investment opportunity sets.
Investment measures are validated based on their correlations with investment opportunity sets, future realized growth, and contemporary employee turnover.
Gaver, 1993, "Additional Evidence on the Association between the Investment Opportunity Set and Corporate Financing, Dividend and Compensation Policies," Journal of Accounting and Economics, 16, 125-140.
Third, we hypothesize that firms are likely to respond to changing investment opportunity sets by using both internal and external growth strategies.
A firm begins a sequence subsequent to growth in its investment opportunity set and ends the sequence when this growth levels off.
Better returns and cash flows may have been used to expand if they have rich perceived investment opportunity sets.
Also the firms may have more growth options in their investment opportunity sets in future.
This paper examines the relationship between the level of investment opportunity sets and managers' accounting choices in Japanese firms from 1990 to 1998.
data to examine the relationship between the level of investment opportunity sets and managers' accounting choices.
However, because it is possible that our proxies for investment opportunities do not adequately capture the variation that truly exists in investment opportunity sets across property-liability insurers, any conclusions regarding this variable should be made with caution.
This study is concerned with the appropriateness of modeling simplifications used to characterize banks' investment opportunity sets and access to equity financing.
The current study provides up-to-date evidence concerning the relationship between the structure of executive compensation packages and firms' investment opportunity sets by exploiting data that have recently become available as a result of new SEC requirements concerning executive compensation reporting in corporate proxy statements.

Full browser ?