Abstract
We present a dynamic property rights model of the firm with two types of non-pecuniary spending: one that is financed through capital markets which impacts future firm wealth, and one that does not. Consumption of the latter good is consistent with what has been found in previous models. Our theoretical model indicates that excess non-pecuniary spending may diverge or converge over time, depending on specific management goals and constraints, and regulatory factors. Using a panel of Washington State hospitals, we find evidence that non-pecuniary spending does fluctuate over time and that government policy variables, such as the level of Medicare and Medicaid reimbursement have a statistically significant impact on a firm's excess non-pecuniary spending.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of the Economics of Business
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
