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Real and Financial Industry Booms and Busts

Phillips, Gordon M.; Hoberg, Gerard - National Bureau of Economic Research (NBER) - 2008

We examine how product market competition affects firm cash flows and stock returns in industry booms and busts. In competitive industries, we find that high industry-level stock-market valuation, investment and new financing are followed by sharply lower operating cash flows and abnormal stock...

Persistent link: https://www.econbiz.de/10005714471

The Joint Cross Section of Stocks and Options

Ang, Andrew; An, Byeong-Je; Bali, Turan G.; Cakici, Nusret - National Bureau of Economic Research (NBER) - 2013

Stocks with large increases in call implied volatilities over the previous month tend to have high future returns while stocks with large increases in put implied volatilities over the previous month tend to have low future returns. Sorting stocks ranked into decile portfolios by past call...

Persistent link: https://www.econbiz.de/10010951430

Hybrid Tail Risk and Expected Stock Returns: When Does the Tail Wag the Dog?

Bali, Turan G.; Cakici, Nusret; Whitelaw, Robert F. - National Bureau of Economic Research (NBER) - 2013

We introduce a new, hybrid measure of stock return tail covariance risk, motivated by the under-diversified portfolio … return as in standard systematic risk measures. We document a positive and significant relation between hybrid tail … covariance risk (H-TCR) and expected stock returns, with an annualized premium of 9%, in contrast to the insignificant or …

Persistent link: https://www.econbiz.de/10010692203

Are Firms in "Boring" Industries Worth Less?

Chen, Jia; Hou, Kewei; Stulz, René M. - National Bureau of Economic Research (NBER) - 2015

Using theories from the behavioral finance literature to predict that investors are attracted to industries with more salient outcomes and that therefore firms in such industries have higher valuations, we find that firms in industries that have high industry-level dispersion of profitability...

Persistent link: https://www.econbiz.de/10011133503

Competition and R&D Financing Decisions: Theory and Evidence from the Biopharmaceutical Industry

Lo, Andrew W.; Thakor, Richard T. - National Bureau of Economic Research (NBER) - 2015

volatility due to higher idiosyncratic risk. While the focus is on the biopharmaceutical industry, the results are broadly …

Persistent link: https://www.econbiz.de/10011159903

State Capitalism vs. Private Enterprise

Chen, Donghua; Jiang, Dequan; Ljungqvist, Alexander; … - National Bureau of Economic Research (NBER) - 2015

We study the efficiency of internal capital markets at state-controlled and privately owned business groups in China. Using highly granular data on within-group capital flows, we document stark differences: while private groups allocate more capital to units with better investment opportunities,...

Persistent link: https://www.econbiz.de/10011165127

Exploration for Human Capital: Evidence from the MBA Labor Market

Kuhnen, Camelia Mariana; Oyer, Paul - National Bureau of Economic Research (NBER) - 2015

We empirically investigate the effect of uncertainty on corporate hiring. Using novel data from the labor market for MBA graduates, we show that uncertainty regarding how well job candidates fit with a firm’s industry hinders hiring, and that firms value probationary work arrangements that...

Persistent link: https://www.econbiz.de/10011119822

Corporate Liquidity Management: A Conceptual Framework and Survey

Campello, Murillo; Almeida, Heitor; Cunha, Igor; … - National Bureau of Economic Research (NBER) - 2013

Ensuring that a firm has sufficient liquidity to finance valuable projects that occur in the future is at the heart of the practice of financial management. Yet, while discussion of these issues goes back at least to Keynes (1936), a substantial literature on the ways in which firms manage...

Persistent link: https://www.econbiz.de/10011188522

Investment Busts, Reputation, and the Temptation to Blend in with the Crowd

Grenadier, Steven; Malenko, Andrey; Strebulaev, Ilya A. - National Bureau of Economic Research (NBER) - 2012

We provide a dynamic model of an industry in which agents strategically time liquidation decisions in an effort to protect their reputations. As in traditional models, agents delay liquidation attempting to signal their quality. However, when the industry faces a common shock that...

Persistent link: https://www.econbiz.de/10011188534

Capital Tax Reform and the Real Economy: The Effects of the 2003 Dividend Tax Cut

Yagan, Danny - National Bureau of Economic Research (NBER) - 2015

Policymakers frequently propose to use capital tax reform to stimulate investment and increase labor earnings. This paper tests for such real impacts of the 2003 dividend tax cut—one of the largest reforms ever to a U.S. capital tax rate—using a quasi-experimental design and a large sample...

Persistent link: https://www.econbiz.de/10011196771