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Competition and R&D Financing : Evidence from the Biopharmaceutical Industry

Thakor, Richard T.; Lo, Andrew W. - 2021

the Hatch-Waxman Act as an exogenous shock to competition, we provide causal evidence which supports these hypotheses …

Persistent link: https://www.econbiz.de/10013249274

Competition and R&D Financing : Evidence from the Biopharmaceutical Industry

Thakor, Richard T. - 2018

What is the interaction between competition, R&D investments, and the financing choices of R&D-intensive firms? Motivated by existing theories, we hypothesize that as competition increases, R&D-intensive firms will: (1) increase R&D investment relative to assets-in-place that support existing...

Persistent link: https://www.econbiz.de/10012937531

Granularity of corporate debt

Choi, Jaewon; Hackbarth, Dirk; Zechner, Josef - 2013

We study to what extent firms spread out their debt maturity dates across time, which we call "granularity of corporate debt." We consider the role of debt granularity using a simple model in which a firm's inability to roll over expiring debt causes inefficiencies, such as costly asset sales or...

Persistent link: https://www.econbiz.de/10010211468

How Does Removing the Tax Benefits of Debt Affect Firms? Evidence from the 2017 US Tax Reform

Sanati, Ali - 2021

Despite extensive efforts, the relation between tax incentives and corporate capital structure is an open question. The 2017 US tax reform creates an opportunity to directly estimate this relation. The reform limits the tax advantage of debt for all firms except for small businesses with average...

Persistent link: https://www.econbiz.de/10013219909

Internal sources of finance and the great recession

Barnes, Michelle L.; Pancost, N. Aaron - 2010

The rising stockpile of cash as a share of total assets at U.S. firms has intrigued economists since at least the paper of Bates, Kahle, and Stulz (2006), yet there has been relatively little work on where this cash has come from and how it is related to investment performance. We exploit...

Persistent link: https://www.econbiz.de/10008778708

Impact of Business Cycles on Retail and Wholesale Firms’ Asset Values Leverage Ratios and Cash Flows : Evidence from U.S. Listed Firms

Kaya, Halil D. - 2013

This study focuses on the impact of the 2001 recession as well as the subsequent expansion on U.S. trade (i.e., retail and wholesale) firms' short-term assets and liabilities. The paper also analyzes the differential effects on long-term debt and cash flow levels between retail and wholesale...

Persistent link: https://www.econbiz.de/10013084769

The Secular Decline in Private Firm Leverage

Dobridge, Christine L.; Gilje, Erik P.; Whitten, Andrew - National Bureau of Economic Research - 2022

Using firm-level administrative tax data on the 43% of business liabilities in the United States tied to privately held firms, we document dramatic reductions in leverage since the Great Recession. Leverage for the average private firm fell fifteen percent between 2004 and 2018. In contrast,...

Persistent link: https://www.econbiz.de/10013210062

Corporate Resiliency and the Choice Between Financial and Operational Hedging

Acharya, Viral V.; Almeida, Heitor; Amihud, Yakov; Ping, Liu - National Bureau of Economic Research - 2025

We investigate how firms manage financial default risk (on debt) and operational default risk (on delivery obligations … predicts that firms' markup increases with financial default risk as they cut operational hedging costs. Empirical analysis … confirms this prediction and shows that the markup-credit risk relationship strengthens during adverse aggregate shocks …

Persistent link: https://www.econbiz.de/10015194985

Policy Uncertainty and Cash Dynamics

Tut, Daniel - 2019

Why and when do firms optimally deviate from target cash? And why do we observe imperfect adjustment of cash? In this paper, we postulate and provide evidence that policy uncertainty induces financing frictions and adjustment costs which decelerate the speed of adjustment (SOA) of cash toward...

Persistent link: https://www.econbiz.de/10012868504

Regulatory independence and political interference : evidence from EU mixed-ownership utilities’ investment and debt

Cambini, Carlo; Rondi, Laura - 2010 - This draft: 11 May 2010

This paper examines the investment and financial decisions of a sample of 92 EU regulated utilities, taking into account key institutional features of EU public utilities, such as: a) regulation by agencies with various degrees of independence; b) partial ownership of the state in the regulated...

Persistent link: https://www.econbiz.de/10008729094