. The stochastic financing conditions have rich implications for investment and risk management: (1) investment can be …Firms face uncertain financing conditions and are exposed to the risk of a sudden rise in financing costs during … financial crises. We develop a tractable model of dynamic corporate financial management (cash accumulation, investment, equity …

This paper develops a general framework for analyzing corporate risk management policies. We begin by observing that if … available to take advantage of attractive investment opportunities. We then argue that this simple observation has wide …-ranging implications for the design of risk management strategies. We delineate how these strategies should depend on such factors as …

This paper proposes a simple homogeneous dynamic model of investment and corporate risk management for a financially … investment and financing decisions. In our model, corporate risk management involves internal liquidity management, financial … constrained firm. Following Froot, Scharfstein, and Stein (1993), we define a corporation's risk management as the coordination of …

returns by aggregate investment and valuation ratios; and v) a downward sloping term structure of risk premia for dividend … firm characteristics - Tobin's Q, past investment, earnings-price ratios, market betas, and idiosyncratic volatility of … the firm's exposure to IST shocks and risk premia. Our calibrated model replicates: i) the predictability of returns by …

We develop an integrated theory of investment, seasoned equity offerings (SEOs), liquidation, and corporate savings … payout policies. Facing costly external financing, the firm prefers to fund its investment internally, so that its optimal … substantial delay in investment; (4) A financially constrained firm over-invests in early stages of its life-cycle in an effort to …

This paper examines the effect of a change in U.S. trade policy on the domestic investment of U.S. manufacturers. Using … uncertainty exhibit relative declines in investment after the change in trade policy. Within industries, we find that this … intensity. Plants with high initial levels of skill intensity, by contrast, exhibit relative increases in investment with …

We study the evolution of profits, investment and market shares in US industries over the past 40 years. During the … competition, intangible investment, and increasing productivity of leaders. After 2000, however, the evidence suggests inefficient … associated with lower investment, higher prices and lower productivity growth.Institutional subscribers to the NBER working paper …

changes in modelling strategy and econometric methodology, over the past twenty years, on estimation of firm-level investment … equations using panel data. Secondly, we try to assess whether the differences in the estimated investment equations, as between … correction, traditional between- and within-firm estimation versus GMM estimation, the investment behavior of French firms versus …

We present a model of endogenous firm growth with R&D investment and stochastic innovation as the engines of growth …) firm growth independent of firm size, as stated in the so-called Gibrat's law, and (iii) R&D investment proportional to …