Abstract
This paper takes a further step towards the integration of the theories of production and finance under uncertainty. It sets up a continuous time‐diffusion process model of production by firms and portfolio investment by individuals and provides a simultaneous solution to these two decisions. The derived equilibrium conditions, being in the stockholders' interest, are specific in form, and are determined by two factors: attitudes of investors towards risk and the systematic risks of the firm.
| Original language | English |
|---|---|
| Pages (from-to) | 221-225 |
| Number of pages | 5 |
| Journal | Managerial and Decision Economics |
| Volume | 9 |
| Issue number | 3 |
| DOIs | |
| State | Published - Sep 1988 |
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