Question: In class we discussed asset - specific investments ( which Hansmann refers to as firm - specific investments ) . What is their significance for
In class we discussed "assetspecific investments" which Hansmann refers to as "firmspecific investments" What is their significance for understanding the firm? A Firmspecific investments are what the stock market tracks and the goal of the corporation is to maximize share value. B Firmspecific investments is another word for "commodities"; and corporations have a right to sell commodities for profits. C In order for firms to grow their business they need to get investors to give large amounts of capital not just to the industry generally but to their firm specifically. D Firms and ownership rights of the firm are useful for inducing firmspecific investments from various parties who would otherwise be less willing to make such investments.
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