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The Secular Decline in Private Firm Leverage

Dobridge, Christine L.; Gilje, Erik P.; Whitten, Andrew - National Bureau of Economic Research - 2022

Using firm-level administrative tax data on the 43% of business liabilities in the United States tied to privately held firms, we document dramatic reductions in leverage since the Great Recession. Leverage for the average private firm fell fifteen percent between 2004 and 2018. In contrast,...

Persistent link: https://www.econbiz.de/10013210062

Innovation : The Bright Side of Common Ownership?

Antón, Miguel; Ederer, Florian; Giné, Mireia; … - National Bureau of Economic Research - 2024

Firms have inefficiently low incentives to innovate when other firms benefit from their inventions and the innovating firm therefore does not capture the full surplus of its innovations. We show that common ownership of firms mitigates this impediment to corporate innovation. By contrast,...

Persistent link: https://www.econbiz.de/10014512046

Is There Information in Corporate Acquisition Plans?

Gokkaya, Sinan; Liu, Xi; Stulz, René M. - National Bureau of Economic Research - 2024

improve acquisition performance due to learning from market feedback and alleviate acquisition-related market uncertainty …

Persistent link: https://www.econbiz.de/10014512055

Globalization and Profitability of US Firms : The Role of Intangibles

Chintha, Bullipe R.; Jagannathan, Ravi; Sridhar, Sri S. - National Bureau of Economic Research - 2024

China's admission into the WTO in 2001 heralded a new era of globalization, increasing both import competition in domestic markets and foreign opportunities for US firms. In the aggregate, the average annual profitability of US public firms during the post globalization period (2003-2019)...

Persistent link: https://www.econbiz.de/10014512056

Project Development with Delegated Bargaining : The Role of Elevated Hurdle Rates

Barry, John W.; Carlin, Bruce Ian; Crane, Alan D.; … - National Bureau of Economic Research - 2024

During project development, costs are endogenously determined through delegated bargaining with counterparties. In surveys, nearly 80% of CFOs report using an elevated hurdle rate, the implications of which we explore in a delegated bargaining model. We show that elevated hurdle rates can convey...

Persistent link: https://www.econbiz.de/10014512137

How Do U.S. Firms Withstand Foreign Industrial Policies?

Cen, Xiao; Fos, Vyacheslav; Jiang, Wei - National Bureau of Economic Research - 2024

China's industrial policies ("Five-Year Plans") displace U.S. production/employment and heighten plant closures in the same industries as those targeted by the policies in China. The impact was not anticipated by the stock market, but U.S. companies in the "treated industries" suffer a valuation...

Persistent link: https://www.econbiz.de/10014544690

A Shared Interest : Do Bonds Strengthen Equity Monitoring?

Gormley, Todd A.; Jha, Manish - National Bureau of Economic Research - 2024

Institutional investors conduct more governance research and are less likely to follow proxy advisor vote recommendations when a company's bonds comprise a larger share of their assets. These findings are driven by bond holdings, shareholder proposals, and companies where fixed-income managers...

Persistent link: https://www.econbiz.de/10014544807

To Starve or to Stoke? : Understanding Whether Divestment vs. Investment Can Steer (Green) Innovation

Pless, Jacquelyn - National Bureau of Economic Research - 2023

decomposing them and using alternative approaches to measuring environmental performance can improve investment, strategy, and … 16 pollution-intensive sectors are on track for meeting the Paris Agreement emissions targets ("carbon performance"). I … find no correlation between carbon performance and the most basic practices, like disclosing emissions, but a positive …

Persistent link: https://www.econbiz.de/10014226139

The Macroeconomics of Trade Credit

Bocola, Luigi; Bornstein, Gideon - National Bureau of Economic Research - 2023

In most countries, suppliers of intermediate goods and services are also the main providers of short-term financing to firms. This paper studies the macroeconomic implications of these financial links. In our model, trade credit is the outcome of a long-term contract between firms linked in the...

Persistent link: https://www.econbiz.de/10014247947

Sentiment, Productivity, and Economic Growth

Kōnstantinidēs, Giōrgos; Montone, Maurizio; Potì, … - National Bureau of Economic Research - 2023

Previous research finds correlation between sentiment and future economic growth, but disagrees on the channel that explains this result. In this paper, we shed new light on this issue by exploiting cross-country variation in sentiment and market efficiency. We find that sentiment shocks in G7...

Persistent link: https://www.econbiz.de/10014247952