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A firm's leverage increases its bargaining power and reduces suppliers' relation-specific investment, and so does …
Persistent link: https://www.econbiz.de/10013132256
The interaction between product market competition, R&D investment, and the financing choices of R&D-intensive firms on …&D investment relative to assets in place that support existing products; (2) carry more cash; and (3) maintain less net debt. Using …
Persistent link: https://www.econbiz.de/10013249274
&D investment relative to assets-in-place that support existing products; (2) carry more cash; and (3) maintain less net debt. We …
Persistent link: https://www.econbiz.de/10012937531
accessibility to debt and equity capital during the crisis, which, in turn, attributes to reduction in investment. In contrast …, internal finance firms raise additional debt in order to expand their investment during the crisis. The differential effects of … the crisis. Financing and investment activities of internal finance dependent firms during the financial crisis are …
Persistent link: https://www.econbiz.de/10013115078
gap is reliably and positively associated with firm performance and risk and with the riskiness of investment and …
Persistent link: https://www.econbiz.de/10012975384
This paper builds on Rosen (1981) and Hvide (2002) to provide a simple framework that elucidates the nature of incentives in the tournaments among top executives in both the external managerial labor market for the top executive positions in other companies and within the executives' own firm...
Persistent link: https://www.econbiz.de/10012842651
We evaluate the link between CEO industry tournament incentives (ITI) and the product market benefits of corporate liquidity. We find that ITI increase the level and marginal value of cash holdings. Furthermore, ITI strengthen the relation between excess cash and market share gains especially...
Persistent link: https://www.econbiz.de/10012942252
Most firms face some form of competition in product markets. The degree of competition a firm faces feeds back into its cash flows and affects the values of the securities it issues. Through its effects on stock prices, product market competition affects the prices of options on equity and...
Persistent link: https://www.econbiz.de/10011626663
We investigate how product market competition jointly affects specific corporate investment and financing behavior … sell off assets and/or investments. The first three actions are financing decisions while the last two are investment … product market competition are analyzed. The evidence shows that product market competition does affect both investment and …
Persistent link: https://www.econbiz.de/10013088615
This paper studies the relationship between firm leverage and supplier market structure by examining their joint impacts on bargaining and relation-specific investments. We find that firm leverage decreases with the degree of competition among suppliers. Specifically, leverage decreases with the...
Persistent link: https://www.econbiz.de/10013123830