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The Persistence of Miscalibration
Boutros, Michael - 2020
Using 14,800 forecasts of one-year S&P 500 returns made by Chief Financial Officers over a 12-year period, we track the individual executives who provide multiple forecasts to study how their beliefs evolve dynamically. While CFOs' return forecasts are systematically unbiased, their confidence...
Persistent link: https://www.econbiz.de/10012482230
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Managerial Overconfidence and Corporate Policies
Ben-David, Itzhak - 2007
Miscalibration is a standard measure of overconfidence in both psychology and economics. Although it is often used in lab experiments, there is scarcity of evidence about its effects in practice. We test whether top corporate executives are miscalibrated, and whether their miscalibration impacts...
Persistent link: https://www.econbiz.de/10012464935
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Cash Flow and Investment : Evidence from Internal Capital Markets
Lamont, Owen - 1996
Using data from the 1986 oil price decrease, I examine the capital expenditures of non-oil subsidiaries of oil companies. I test the joint hypothesis that 1) a decrease in cash/collateral decreases investment, holding fixed the profitability of investment, and 2) the finance costs of different...
Persistent link: https://www.econbiz.de/10012473360
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The Cost of US Pharmaceutical Price Reductions : A Financial Simulation Model of R&D Decisions
Abbott, Thomas A. - 2005
Previous empirical studies that have examined the links between pharmaceutical price controls, profits, cash flows, and investment in research and development (R&D) have been largely based on retrospective statistical analyses of firm- and/or industry-level data. These studies, which have...
Persistent link: https://www.econbiz.de/10012467571
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The Analytics of Investment, q, and Cash Flow
Abel, Andrew B. - 2015
operating profit of capital, I extend the model to include measurement error and analyze the cash-flow coefficient in …
Persistent link: https://www.econbiz.de/10012457120
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Earnings Quality and Ownership Structure : The Role of Private Equity Sponsors
Katz, Sharon - 2008
This study explores how firms' ownership structures affect their earnings quality and long-term performance. Focusing … that do not (non-PE-backed firms). The findings indicate that PE-backed firms generally have higher earnings quality than … those that do not have PE sponsorship, engage less in earnings management and report more conservatively both before and …
Persistent link: https://www.econbiz.de/10012464560
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Bubbly Liquidity
Farhi, Emmanuel - 2011
This paper analyzes the possibility and the consequences of rational bubbles in a dy- namic economy where financially constrained firms demand and supply liquidity. Bub- bles are more likely to emerge, the scarcer the supply of outside liquidity and the more limited the pledgeability of...
Persistent link: https://www.econbiz.de/10012461908
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Cash Holdings and Credit Risk
Acharya, Viral V. - 2011
Intuition suggests that firms with higher cash holdings are safer and should have lower credit spreads. Yet empirically, the correlation between cash and spreads is robustly positive and higher for lower credit ratings. This puzzling finding can be explained by the precautionary motive for...
Persistent link: https://www.econbiz.de/10012461663
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The Impacts of COVID-19 on Racial Inequality in Business Earnings
Fairlie, Robert W. - National Bureau of Economic Research - 2022
? This paper provides the first study of the impacts of COVID-19 on racial inequality in business earnings. Pandemic …-induced losses to business earnings in 2020 were 16-19 percent for all business owners. Racial inequality increased in the pandemic …: Black business owners experienced larger negative impacts on business earnings of 12-14 percent relative to white business …
Persistent link: https://www.econbiz.de/10013435094
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Leverage and Cash Dynamics
DeAngelo, Harry; Gonçalves, Andrei S.; Stulz, René M. - National Bureau of Economic Research - 2021
This paper documents new and empirically important interactions between cash-balance and leverage dynamics. Cash ratios typically vary widely over extended horizons, with dynamics remarkably similar to (and complementary with) those of capital structure. Leverage and cash dynamics interact...
Persistent link: https://www.econbiz.de/10012585454