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Feedback from stock prices to cash flows occurs because information revealed by firms' stock prices influences the actions of competitors. We explore the implications of feedback within a noisy rational expectations setting with incumbent publicly traded firms and privately held new entrants. In...
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, by unobserved shocks to participation by informationless traders, and by real investment. The equilibrium relations …
Persistent link: https://www.econbiz.de/10013089186
Feedback from stock prices to cash flows occurs because information revealed by firms' stock prices influences the actions of competitors. We explore the implications of feedback within a noisy rational expectations setting with incumbent publicly traded firms and privately held new entrants. In...
Persistent link: https://www.econbiz.de/10013076911
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This dissertation examines issues in banking and the financing of corporate investment. The first chapter investigates … the impact of changes in a bank's health on the investment behavior of its current borrowers for a panel of U.S. firms. I … investment when the health of their primary bank deteriorates. This effect is only present while the firm maintains a borrowing …
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