Investment theory
Investment theory is a collective term for various theories in business administration that deal with business investment decisions .
General
The investment theory occupies a central position in business research today. This is because investment decisions are particularly risky because they are based on uncertain future expectations and, moreover, cannot be corrected at all at a later point in time or can only be corrected with the acceptance of high losses. In addition, the capital commitment is also of a significant order of magnitude for research and development investments . The economic existence of companies therefore depends to a large extent on investment decisions, which must be based on optimal investment planning. The corporate investment theory primarily contains procedures for the optimal selection of individual investment measures and entire investment programs.
Classic investment theory
The investment theories emerged from the economic interest and capital theory . For the first time you meet her in Irving Fisher's capital and investment theory in 1906 and 1907, but the clearest and most famous exposition of his theory is his theory of interest ( english The Theory of Interest ) from 1930. Under the assumption of a perfect capital market in security contented The classical investment theory , which began with the Fisher separation theorem , deals with the rather superficial examination of a comparative investment at a certain discount rate. For this purpose, it used the three financial mathematical basic models of the capital value method, the internal rate of return method ( risk premium ) or the annuity method for the investment calculation . Because of the perfect capital market, it did not have to differentiate between equity and debt capital , it did not have to take into account any financial bottlenecks and it used a single capital market interest rate .
Neoclassical Investment Theory
The neoclassical investment theory tried to overcome these unrealistic assumptions . It takes into account the risk that an investment may be substantial sunk costs are to be accepted that the cash flows from the irreversible investment of uncertainty ( uncertainty subject) and that the investor often a temporal flexibility has with regard to the time of investment. In doing so, she uses the real option analysis . The explicit consideration of adjustment costs of the capital stock in investment theory is first found in 1963.
Neo-institutional investment theory
It was not until the neo-institutional investment theory , developed around 1980 , that the perfect capital market was overcome and it was based on an imperfect capital market. There are transaction and information costs , taxes , information asymmetry , preferences and irrational behavior. It emphasizes investment calculations based on market interest rates and makes use of the theory of rights of disposal as well as the theory of transaction costs based on the new institutional economics .
literature
- Busse from Colbe, Walther / Laßmann, Gert / Witte, Frank: Investment theory and investment calculation. 4th edition 2015, Springer Verlag, ISBN 978-3-540-56907-7 .
- Thomas Hering : Investment Theory . 4th revised and updated edition 2015, De Gruyter Oldenbourg, ISBN 978-3-486-77839-7 .
Individual evidence
- ↑ Karl-Werner Hansmann, Dynamic Stock Investment Planning , 1980, p. 11
- ↑ Walther Busse von Colbe / Gert Lassmann, Business Theory : Investment Theory , Volume 1, 1977, p. 7
- ↑ Irving Fisher, The Nature of Capital and Income , 1906
- ^ Irving Fisher, The Rate of Interest , 1907
- ^ Irving Fisher, The Theory of Interest , 1930, p. 148
- ↑ Horst Albach / Hermann Simon (eds.), Investment Theory and Investment Policy of Private and Public Enterprises , 1975, p. 148
- ↑ Jan Hendrik Fisch, International Real Options , 2006, p. 37
- ^ Robert Eisner / Robert H Strotz, Determinants of Business Investment , in: DB Suits (Ed.), Impacts of Monetary Policy, 1963, pp. 60 ff.
- ↑ Bernd Rolfes , Modern Investment Calculation , 1992, p. 181