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Risk, the Limits of Financial Risk Management, and Corporate Resilience
Stulz, René M. - National Bureau of Economic Research - 2024
Existing evidence shows convincingly that expected cash flows of non-financial firms can be negatively affected by their total risk, so that non-financial firms can create shareholder wealth by managing their total risk. After reviewing theories that demonstrate links between firm value and...
Persistent link: https://www.econbiz.de/10015056208
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A Quantity-Based Approach to Constructing Climate Risk Hedge Portfolios
Alekseev, Georgij; Giglio, Stefano; Maingi, Quinn; … - National Bureau of Economic Research - 2022
We propose a new methodology to build portfolios that hedge the economic and financial risks from climate change. Our quantity-based approach exploits information on how mutual fund managers trade in response to idiosyncratic changes in their climate risk beliefs. We exploit two types of...
Persistent link: https://www.econbiz.de/10013477195
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Corporate Discount Rates
Gormsen, Niels; Huber, Kilian - National Bureau of Economic Research - 2023
Standard theory implies that the discount rates used by firms in investment decisions (i.e., their required returns to capital) determine investment and transmit financial shocks to the real economy. However, there exists little evidence on how firms' discount rates change over time and affect...
Persistent link: https://www.econbiz.de/10014322717
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Climate Capitalists
Gormsen, Niels; Huber, Kilian; Oh, Sangmin - National Bureau of Economic Research - 2024
Firms' perceived cost of green capital has decreased since the rise of sustainable investing. Green and brown firms perceived their cost of capital to be the same before 2016, but after the post-2016 surge in sustainable investing, green firms perceived their cost of capital to be on average 1...
Persistent link: https://www.econbiz.de/10015072875
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Modeling Managers As EPS Maximizers
Ben-David, Itzhak; Chinco, Alexander M. - National Bureau of Economic Research - 2023
Textbook theory assumes that firm managers maximize the net present value of future cash flows. But when you ask them, real-world firm managers consistently say that they are maximizing something else entirely: earnings per share (EPS). Perhaps this is a mistake. No matter. We take firm managers...
Persistent link: https://www.econbiz.de/10014250143
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The 2003 Dividend Tax Cuts and the Value of the Firm : An Event Study
Auerbach, Alan J. - 2005
noteworthy may have been the reduction in dividend tax rates. The political debate over the dividend tax reductions of 2003 took … probability of significant dividend tax reduction fluctuated significantly during 2003. In this paper, we use this fact to … estimate the effects of dividend tax policy on firm value. We find that firms with higher dividend yields benefited more than …
Persistent link: https://www.econbiz.de/10012467230
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Dividend Taxes and Share Prices : Evidence from Real Estate Investment Trusts
Gentry, William M. - 2001
Financial economists have debated the impact of dividend taxes on firm valuation for decades, but existing empirical … institutional characteristics of Real Estate Investment Trusts (REITs). For REITs, dividend policy is largely non … shareholders as reductions in dividend taxes. Within this environment, we regress the market value of a REIT's equity on the market …
Persistent link: https://www.econbiz.de/10012470232
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What is the Impact of Successful Cyberattacks on Target Firms?
Kamiya, Shinichi - 2018
We examine which firms are targets of cyberattacks and how they are affected. We find that cyberattacks cause firms to reassess the risks that they are exposed to and their consequences, so that they have real effects on firm policies even when targets are not financially constrained....
Persistent link: https://www.econbiz.de/10012453305
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ChatGPT and Corporate Policies
Jha, Manish; Qian, Jialin; Weber, Michael; Yang, Baozhong - National Bureau of Economic Research - 2024
We create a firm-level ChatGPT investment score, based on conference calls, that measures managers' anticipated changes in capital expenditures. We validate the score with interpretable textual content and its strong correlation with CFO survey responses. The investment score predicts future...
Persistent link: https://www.econbiz.de/10014486252
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Q-Monetary Transmission
Jeenas, Priit; Lagos, Ricardo - National Bureau of Economic Research - 2022
We study the effects of monetary-policy-induced changes in Tobin's q on corporate investment and capital structure. We develop a theory of the mechanism, provide empirical evidence, evaluate the ability of the quantitative theory to match the evidence, and quantify the relevance for monetary...
Persistent link: https://www.econbiz.de/10013210051