Hofmann Co-Financing Hollywood Film Productions with Outside Investors

An Economic Analysis of Principal Agent Relationships in the U.S. Motion Picture Industry
2013
ISBN: 978-3-658-00787-4
Verlag: Springer
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 159 Seiten, eBook

Reihe: Markt- und Unternehmensentwicklung Markets and Organisations

Over the past two decades, investors from outside the motion picture industry have increasingly supplied equity to U.S. film productions. Today, these so-called co-financing arrangements are a common phenomenon in Hollywood. While the large studios usually carry out the operative tasks of movie production and distribution, the financiers as co-owners of the completed films have rights to the residual profits. Kay H. Hofmann analyzes the conflicts of interest and the organizational problems that may arise between the experienced major studios and investors with comparably low industry expertise. Guided by principal agent theory, the empirical analysis provides evidence for adverse selection and multiple aspects of moral hazard during production as well as distribution. Based on these findings, the author develops solutions that are not only relevant for current and future investors but also for studios and film producers who rely on the long-term availability of external funds.

Zielgruppe

Research

Autoren/Hrsg.

Hofmann, Kay H.

Inhaltsverzeichnis

The Business of Motion Picture Production and Distribution.- Co-Financing Film Projects with External Investors.- Principal Agent Problems in Co-Financing Relationships.- Empirical Investigation of Adverse Selection and Moral Hazard.- Managerial Implications and Developments in the Co-Financing Market.

Über Autor(innen)

Dr. Kay H. Hofmann, MBA wrote his dissertation under the supervision of Prof. Dr. Christian Opitz at Zeppelin Universität, Friedrichshafen. He works in a corporate strategy and business development function for a multinational company.