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investment - results that are consistent with the model's predictions. -- investment ; stock market ; bubble ; dispersion …
Persistent link: https://www.econbiz.de/10001936312
This paper explores the connection between rising intangible capital and the secular upward trend in US corporate cash holdings. We calibrate a dynamic model with two productive assets, tangible and intangible capital, to highlight the following points: 1) since only tangible capital can be...
Persistent link: https://www.econbiz.de/10012852047
This paper explores the hypothesis that the rise in intangible capital is a fundamental driver of the secular trend in US corporate cash holdings over the last decades. Using a new measure, we show that intangible capital is the most important firm-level determinant of corporate cash holdings....
Persistent link: https://www.econbiz.de/10012938237
corporate investment. We document that in a sample of publicly listed firms in the United States over the period 1991-2013, bank … systemic risk is positively associated with the firm-level investment ratio after controlling for a large set of country … risk on corporate investment, suggesting that more financially constrained firms experience a larger effect of bank …
Persistent link: https://www.econbiz.de/10012965541
known as intangibles, suggest that their share in overall investment has grown considerably. Still, intangible investment is … rarely present in investment models. In this paper, I extend the q-theory of investment to model explicitly the decision of … movements in the measurement of the contribution of each type of investment to the overall capital stock. In particular, given …
Persistent link: https://www.econbiz.de/10003919317
, scope, and investment decisions, and we outline their connection to recent macroeconomic and financial trends in the US …
Persistent link: https://www.econbiz.de/10013362030
With functionally efficient capital markets, we expect capital to flow more to the industries with the best growth opportunities. As a result, these industries should invest more and see their assets grow more relative to industries with the worst growth opportunities. We find that industries...
Persistent link: https://www.econbiz.de/10011962227
We study the time-varying effects of Tobin's q and cash flow on investment dynamics in the USA using a vector … variation over time of the response of investment to shocks in both variables. The time-varying sensitivity of investment to a … show that, although Tobin's q and cash flow are complementary sources of information for investment decisions, their …
Persistent link: https://www.econbiz.de/10014483612
between leverage and changes in investment and production when firms face a sudden change in their investment opportunity sets … leveraged oil producers reduce investment and increase production to generate cash flow to make their debt payments after the …
Persistent link: https://www.econbiz.de/10012985911
This paper examines the investment and financial decisions of a sample of 92 EU regulated utilities, taking into … independence matters for both investment and financial decisions. Investment increases under an Independent Regulatory Agency (IRA … privately controlled. Finally political orientation does matter, as firm investment increases under more conservative (pro …
Persistent link: https://www.econbiz.de/10008729094