What drives a company's choice between buying or leasing equipment? It's not just about interest rates or tax benefits. In this episode, we uncover how the fierce competition among executives vying for the CEO position secretly influences fundamental financial decisions. This study was coauthored by Dr. Shofiqur Rahman, a Professor in the Department of Finance. The paper is entitled "Tournament-based incentives and the lease-versus-buy decision" and was published in the Journal of Baking and Finance in 2023. (https://doi.org/10.1016/j.jbankfin.2023.106877)
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