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Corporate Investment with Financial Constraints : Sensitivity of Investment to Funds from Voluntary Asset Sales

Hovakimian, Gayane - 2003

This paper examines the importance of financial constraints for firm investment expenditures by looking at the relationship between investment expenditures and proceeds from voluntary asset sales in financially healthy US manufacturing companies. Specifically, we examine whether asset sales have...

Persistent link: https://www.econbiz.de/10012469271

Real Assets and Capital Structure

Campello, Murillo - 2012

We characterize the relation between asset structure and capital structure by exploiting variation in the salability of corporate assets. Theory suggests that asset tangibility increases borrowing capacity because it allows creditors to more easily repossess a firm's assets. Tangible assets,...

Persistent link: https://www.econbiz.de/10012460512

Fixed Costs and Long-Lived Investments

House, Christopher L. - 2008

Neoclassical investment models predict that firms should make frequent, small adjustments to their capital stocks. Microeconomic evidence, however, shows just the opposite -- firms make infrequent, large adjustments to their capital stocks. In response, researchers have developed models with...

Persistent link: https://www.econbiz.de/10012464245

Specific Capital and Technological Variety

Jovanovic, Boyan - 2008

Growth of technological variety offers more scope for the division of labor. And when a division of labor requires some specific training, the technological specificity of human capital grows and, with it, probably the firm specificity of that capital. We build a simple model that captures this...

Persistent link: https://www.econbiz.de/10012464649

Labor in the Boardroom

Jäger, Simon - 2019

We estimate the effects of a mandate allocating a third of corporate board seats to workers (shared governance). We study a reform in Germany that abruptly abolished this mandate for certain firms incorporated after August 1994 but locked it in for the older cohorts. In sharp contrast to the...

Persistent link: https://www.econbiz.de/10012480463

Young Firms, Old Capital

Ma, Song; Murfin, Justin; Pratt, Ryan D. - National Bureau of Economic Research - 2021

Across a broad range of equipment types and industries, we document a pattern of local capital reallocation from older firms to younger firms. Start-ups purchase a disproportionate share of old physical capital previously owned by more mature firms. The evidence is consistent with financial...

Persistent link: https://www.econbiz.de/10012616636

Why Do Computers Depreciate?

Geske, Michael J. - 2004

, obsolescence, instantaneous depreciation, and age-related depreciation. The paper uses data on the resale price of computers and a …-related depreciation -- which is often identified as deterioration -- is estimated to be negligible. While the majority of the loss in …

Persistent link: https://www.econbiz.de/10012467858

How Fast Do Personal Computers Depreciate? Concepts and New Estimates

Doms, Mark E. - 2004

This paper provides new estimates of depreciation rates for personal computers using an extensive database of prices of …. We decompose that decline into age-related depreciation and a revaluation effect, where the latter effect is driven by … measuring the depreciation of PCs in the National Income and Product Accounts (NIPAs) and were incorporated into the December …

Persistent link: https://www.econbiz.de/10012468172

Inefficiency of Corporate Investment and Distortion of Savings Behavior in Japan

Ando, Albert - 2003

estimate of the capital stock and its depreciation to those offered in the National Accounts. The basic difference is that the … depreciation rates underlying our calculations are substantially lower than those used in the Japanese National Accounts, and …

Persistent link: https://www.econbiz.de/10012469257

Depreciation of Business R&D Capital

Li, Wendy C.Y. - 2016

We develop a forward-looking profit model to estimate the depreciation rates of business R&D capital. By using data …-specific R&D depreciation rates. The results comprise a set of R&D depreciation rates for major U.S. high-tech industries. They … percent and vary across industries. The relative ranking of the constant R&D depreciation rates among industries is consistent …

Persistent link: https://www.econbiz.de/10012456204