DKK 2.8 million grant to Stefan Hirth from IRFD

Associate Professor Stefan Hirth has received a DKK 2.8 million grant from The Independent Research Fund Denmark. In his new project, he will investigate the strategic interaction between a firm seeking financing and its potential investors.

2020.12.09 | Ingrid Marie Fossum

Associate Professor of Economics Stefan Hirth Photo: Aarhus BSS Communication and External Relations

”In an earlier project, we have investigated how outsiders can infer positive news from the fact that a firm survives an apparently distressed period without going bankrupt.

The grant will give me the opportunity to strengthen our team with a postdoctoral researcher and investigate a follow-up research agenda.

One exciting way forward is to look at the bright side of firms with growth options. Then, outsiders can learn from observing that apparently good opportunities are not exercised and downward adjust their valuation of the firm,” says Associate Professor of Economics Stefan Hirth from Aarhus BSS at Aarhus University.

Stefan Hirth has just received a DKK 2.8 million grant from The Independent Research Fund Denmark for his project “Debt valuation and strategic interaction”. In his new project, he will investigate the strategic interaction between a firm seeking financing and its potential investors.

“Our project has the potential to contribute to a more efficient allocation of capital in the economy, such that inefficient bankruptcies are avoided and the best available real investment projects are funded,” says Stefan Hirth.

Grants