Incomplete markets, intra-industry firm heterogeneity and investment. The case of uranium exploration

Journal Article (Journal Article)

We argue that as a result of incomplete factor markets, firm-specific variables representing selected characteristics of firms may influence and differentiate firms' investment behavior within industries. This paper operationalizes and test the framework with a simple, institutionally motivated model of investment in uranium exploration. Our results suggest that cash flow and firm-specific expertise influence and differentiate firms' exploration investment behavior in the uranium industry. These findings imply that the ways in which incomplete factor input markets distinguish firms also influence and differentiate their investment behavior. © 1990.

Full Text

Duke Authors

Cited Authors

  • Cohen, WM

Published Date

  • January 1, 1990

Published In

Volume / Issue

  • 14 / 2

Start / End Page

  • 223 - 248

International Standard Serial Number (ISSN)

  • 0167-2681

Digital Object Identifier (DOI)

  • 10.1016/0167-2681(90)90076-P

Citation Source

  • Scopus