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financial frictions induces the standard real-options effects on investment and hiring, but also leads firms to hoard cash …, further reducing investment and hiring. We then test the model using a panel of US firms and a novel instrumentation strategy …
Persistent link: https://www.econbiz.de/10011895833
We develop and implement a methodology to disentangle various sources of capital misallocation, i.e., dispersion in static marginal products. Our strategy uses readily observable moments in firm-level data, e.g., capital and revenues, to measure the contributions of technological and...
Persistent link: https://www.econbiz.de/10012455552
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firm characteristics - Tobin's Q, past investment, earnings-price ratios, market betas, and idiosyncratic volatility of … returns by aggregate investment and valuation ratios; and v) a downward sloping term structure of risk premia for dividend … strips. Our model delivers testable predictions about the behavior of firm-level real variables - investment and output …
Persistent link: https://www.econbiz.de/10012460684
This paper discusses the fundamental underpinnings and some implications of transaction cost regulation (TCR), a framework to analyze the interaction between governments and investors fundamentally, but not exclusively, in utility industries. TCR sees regulation as the governance structure of...
Persistent link: https://www.econbiz.de/10012461923
Many standard setting organizations (SSOs) require participants to disclose patents that might be infringed by implementing a proposed standard, and commit to license their "essential" patents on terms that are at least fair, reasonable and non-discriminatory (FRAND). Data from these SSO...
Persistent link: https://www.econbiz.de/10012455055
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