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Skill Acquisition, Credit Constraints, and Trade

Chesnokova, Tatyana - 2006

This paper looks at the effect of credit constraints on skill acquisition when agents have heterogeneous abilities and wealth. We use a two factor general equilibrium model and assume credit markets are absent. We explore the effects of trade on factor earnings as well as the evolution of the...

Persistent link: https://www.econbiz.de/10012779330

Financially Constrained Stock Returns

Livdan, Dmitry - 2010

More financially constrained firms are riskier and earn higher expected returns than less financially constrained firms, although this effect can be subsumed by size and book-to-market. Further, because the stochastic discount factor makes capital investment more procyclical, financial...

Persistent link: https://www.econbiz.de/10012760623

Financing Invention During the Second Industrial Revolution : Cleveland, Ohio, 1870-1920

Lamoreaux, Naomi R.; Levenstein, Margaret C.; Sokoloff, … - 2021

For those who think of Cleveland as a decaying rustbelt city, it may seem difficult to believe that this northern Ohio port was once a hotbed of high-tech startups, much like Silicon Valley today. During the late nineteenth and early twentieth centuries, Cleveland played a leading role in the...

Persistent link: https://www.econbiz.de/10013229153

Corporate Taxes and Internal Borrowing within Multinational Firms

Egger, Peter H. - 2012

This paper develops a theoretical model of multinational firms with an internal capital market. Main reasons for the emergence of such a market are tax avoidance through debt shifting and the existence of institutional weaknesses and financial frictions across host countries. The model serves to...

Persistent link: https://www.econbiz.de/10013100410

The Real and Financial Implications of Corporate Hedging

Campello, Murillo - 2010

of financial distress. In theory, this should ease a firm's access to credit. Using a tax-based instrumental variable …

Persistent link: https://www.econbiz.de/10013134932

Behavioral Corporate Finance : An Updated Survey

Baker, Malcolm P. - 2011

We survey the theory and evidence of behavioral corporate finance, which generally takes one of two approaches. The … on their decisions. We review relevant psychology, economic theory and predictions, empirical challenges, empirical …

Persistent link: https://www.econbiz.de/10013121051

Credit Shocks and Aggregate Fluctuations in an Economy with Production Heterogeneity

Khan, Aubhik - 2011

We study the cyclical implications of credit market imperfections in a calibrated dynamic, stochastic general equilibrium model wherein firms face persistent shocks to aggregate and individual productivity. In our model economy, optimal capital reallocation is distorted by two frictions:...

Persistent link: https://www.econbiz.de/10013121072

Are Corporate Default Probabilities Consistent with the Static Tradeoff Theory?

Hovakimian, Armen - 2011

Default probability plays a central role in the static tradeoff theory of capital structure. We directly test this … theory by regressing the probability of default on proxies for costs and benefits of debt. Contrary to predictions of the … theory, firms with higher bankruptcy costs, i.e., smaller firms and firms with lower asset tangibility, choose capital …

Persistent link: https://www.econbiz.de/10013121593

Customer Capital

Gourio, Francois - 2011

Firms spend substantial resources on marketing and selling. Interpreting this as evidence of frictions in product markets, which require firms to spend resources on customer acquisition, this paper develops a search theoretic model of firm dynamics in frictional product markets. Introducing...

Persistent link: https://www.econbiz.de/10013122655

Financing Labor

Benmelech, Efraim - 2011

Financial market imperfections can have significant impact on employment decisions of firms. We illustrate the economic importance of this channel by demonstrating that the responsiveness of employment decisions to firms' financial health is quantitatively similar to the much-studied...

Persistent link: https://www.econbiz.de/10013123688