Tag
management_consulting
2 findings
Finance & microfinanceTangible Capital Surplus versus Intangible Asset Financing FrictionsProject firms made average tangible capital investments of $880,000 (median $140,000) over two years, showing that direct execution costs of management practices ($3,000) were unconstrained, whereas market-rate external consulting ($250,000) faced severe intangible asset collateralization barriers in credit markets.RCTEconomics (general)Asymmetric Information and Lemons Market Failure in Advisory Services100% of candidate firms regularly received low-quality unsolicited sales offers, leading directors to reject market-rate consulting despite an estimated 130% one-year return on investment ($325,000 annual profit increase on a $250,000 investment).Expert Theory