9 April 2009
Professor Chongwoo Choe from the Faculty of Business and Economics has attracted one of the two grants awarded nationally under the ARC's Linkage International, Internationally Coordinated Initiatives (ICI) Social Science Collaboration (SSC) scheme.
ARC's Linkage International, Internationally Coordinated Initiatives (ICI) Social Science Collaboration (SSC) scheme aims to build collaborations among researchers in Australia and overseas. It generates opportunities for researchers to participate in leading-edge international research networks and strengthen their international research experience. The scheme also builds Australian research capability by enhancing existing and developing new collaborations among researchers.
The grant for $69,000 will assist Professor Choe to continue his research into how large multidivisional corporations make an active use of internal capital markets for resource allocation.
"This project aims to develop a theoretical model that captures this aspect of internal capital markets and then to test our main theoretical findings," said Professor Choe.
"There is a considerable gap between real-world economic organisations and the economic theory of the firm. This project will provide formal theories about resource allocation within multidivisional corporations and the nature of optimal incentives for the CEO as well as division managers. We hope this project helps to fill the gap," he said.
Professor Choe and his team have been collaborating on this project with Professor In-Uck Park from the University of Bristol in the United Kingdom and hopes to continue the collaboration with the University of Bristol in the future. | 
