Showing 1 - 10 of 132
Cost of capital rate is a result of risk included in cost of debt rates and cost of equity rates. Generally to estimate cost of capital rates with use of CAPM conception, is used information about general risk indicator, known as beta coefficient and relations between debt and equity rates. Such...
Persistent link: https://www.econbiz.de/10010310993
We propose a model of firm expansion and contraction choices which integrates approaches from the industrial organization and corporate finance literature within one unified setting. Firms respond to shocks to their marginal costs by expanding or contracting output via internal or external...
Persistent link: https://www.econbiz.de/10010270097
We use a unique sample of self-employed and corporate clients provided by a universal bank in Germany to investigate how recall risk of recallable bank lines of credit impact cash holdings and line usage. While the bank does not require an upfront fee for providing a line of credit, which may...
Persistent link: https://www.econbiz.de/10010270134
We analyze the life-cycle patterns of a firm's financing decisions and their interaction with future growth and development decisions. The framework derives three different financing sequences (debt-debt, equity-debt, equity-equity financing) which we link to existing empirical research....
Persistent link: https://www.econbiz.de/10010270176
We study own and rival risk in a dynamic duopoly with a homogeneous output good. A competitor's options to adjust capacity reduce own-firm risk through a simple hedging channel. For example, if a rival possesses a growth option, an increase in industry demand directly enhances current profits...
Persistent link: https://www.econbiz.de/10010270190
The elasticity of business capital to changes in its user cost is central to the economic analysis of fiscal policies. As a major component, the user cost of capital includes a firm's marginal tax rate. Due to the asymmetric treatment of tax losses and profits, the marginal tax rate can depart...
Persistent link: https://www.econbiz.de/10010305934
We contribute to the empirical literature on the relationship between corporate taxes and investment. We exploit the introduction of the so-called ACE corporate tax reform in Belgium that came into effect in January 2006 to evaluate this relationship in a quasiexperimental setting based on...
Persistent link: https://www.econbiz.de/10011301484
We study the simultaneous choice of investment, debt financing and liquidity for a large sample of US corporates between 1980 and 2014. We partition the sample according to the firms' financial constraints and their needs to hedge against future shortfalls in operating income. In contrast to...
Persistent link: https://www.econbiz.de/10011310224
Manpower constraints are the pervasive lack of specialized high- and low-skill workers, irrespective of the wage firms might offer.
Persistent link: https://www.econbiz.de/10011712622
Firms in information and communication (ICT) sector are often considered as an important element of business innovation performance in the economy. This paper is focused on examining their share on innovation and total research and development (R&D) expenditure in selected European countries....
Persistent link: https://www.econbiz.de/10012141524