Showing 1 - 10 of 4,363
This paper characterizes how firms' strategic interaction in product markets affects the industry dynamics of investment and expected returns. In imperfectly competitive industries, a firm's exposure to systematic risk is jointly affected by its own investment strategy and the investment...
Persistent link: https://www.econbiz.de/10013039458
We aim at obtaining a simple quantitative rule for the joint determining of optimal corporate investment and financing policies in an intertemporal setting. A novel general continuous-time framework, inspired by the optimal portfolio design literature, is first built. We derive the optimal...
Persistent link: https://www.econbiz.de/10013132507
This paper investigates the link between corporate debt and investment for a group of five peripheral euro area countries. Using firm-level data from 2005-2014, we postulate a non-linear corporate leverage-investment relationship and derive thresholds beyond which leverage has a negative and...
Persistent link: https://www.econbiz.de/10011719911
This paper investigates the link between corporate debt and investment for a group of five peripheral euro area countries. Using firm-level data from 2005-2014, we postulate a non-linear corporate leverage-investment relationship and derive thresholds beyond which leverage has a negative and...
Persistent link: https://www.econbiz.de/10012947848
We show that firms’ debt maturity structure plays an important role in investment above and beyond that of leverage. Firms with a longer debt maturity structure tend to invest more. These results are stronger for firms with high leverage, profitability, and growth potential. We rationalize our...
Persistent link: https://www.econbiz.de/10014253960
In work the methodology of strategic management of the value of the company taking into account risks of the realized projects is offered. New measures of risks of projects, such as VaR of the project, ES project, marginal VaR of the project and cost of VaR of the project are considered and...
Persistent link: https://www.econbiz.de/10013025920
This paper investigates the extent to which corporate cash holdings protect firms from the adverse consequences of shocks to their borrowing cost. It develops a dynamic model of corporate investment and financing decisions subject to real and financial frictions. The calibrated model matches the...
Persistent link: https://www.econbiz.de/10012655339
The purpose of the transparency on the risk profile of non-equity investment products is to allow investors to take informed investment decisions. In an international framework characterized by an increasing globalization of markets and a growing integration of banking, asset management and...
Persistent link: https://www.econbiz.de/10013114449
I show that access to the public debt market is associated with a significant reduction in the level of capital expenditures and takeovers, especially for firms with higher credit risk. Firms accessing the bond market also become less likely to violate debt covenants, reduce the level of payouts...
Persistent link: https://www.econbiz.de/10013114349
The investment premium -- the finding that firms with low asset growth deliver high average returns -- is an integral part of recent factor models. I document empirically that the investment premium (1) reflects leverage, (2) does not exist among zero-leverage firms, and (3) increases with...
Persistent link: https://www.econbiz.de/10012907925