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Belenzon, Sharon - 2009

This paper examines the relation between ownership, corporate form, and innovation for a cross-section of private and …: while most innovating firms in the US are publicly traded conglomerates, a substantial fraction of innovation is … countries, where business groups tend to be concentrated in industries with a slower and more fundamental innovation cycle and …

Persistent link: https://www.econbiz.de/10012463346

Firm Commitments

Bolton, Patrick; Kacperczyk, Marcin - National Bureau of Economic Research - 2023

A growing fraction of companies globally have made commitments to reduce their carbon emissions by a certain date. While the companies that make commitments subsequently reduce their emissions, the effect on overall emissions of companies (including those that do not commit) has been small; the...

Persistent link: https://www.econbiz.de/10014287345

Leverage Dynamics and Financial Flexibility

Bolton, Patrick - 2020

We develop a q theory of investment with endogenous leverage, payout, hedging, and risk-taking dynamics. The key frictions are costly equity issuance and incomplete markets. We show that the marginal source of external financing on an on-going basis is debt. The firm lowers its debt when making...

Persistent link: https://www.econbiz.de/10012479326

A Unified Theory of Tobin's q, Corporate Investment, Financing, and Risk Management

Bolton, Patrick - 2009

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

Persistent link: https://www.econbiz.de/10012463803

Optimal Property Rights in Financial Contracting

Ayotte, Kenneth - 2007

In this paper we propose a theory of optimal property rights in a financial contracting setting. Following recent contributions in the property law literature, we emphasize the distinction between contractual rights, that are only enforceable against the parties themselves, and property rights,...

Persistent link: https://www.econbiz.de/10012465334

Investment Under Uncertainty and the Value of Real and Financial Flexibility

Bolton, Patrick - 2014

We develop a model of investment timing under uncertainty for a financially constrained firm. Facing external financing costs, the firm prefers to fund its investment through internal funds, so that the firm's optimal investment policy and value depend on both its earnings fundamentals and...

Persistent link: https://www.econbiz.de/10012458055

Market Timing, Investment, and Risk Management

Bolton, Patrick - 2011

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 issuance, risk management, and payout policies) for a...

Persistent link: https://www.econbiz.de/10012461849