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Why does capital no longer flow more to the industries with the best growth opportunities?

Lee, Dong Wook; Shin, Hyun-Han; Stulz, René M. - 2016

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

Why does equity capital flow out of high Tobin's q industries?

Lee, Dong Wook; Shin, Han; Stulz, René M. - 2020

rents than for investment opportunities have become more important within industries. For these firms, repurchases increase …

Persistent link: https://www.econbiz.de/10012168947

Financial constraints and firm capital structure in Kenya

Kirui, Benard Kipyegon; Gor, Seth Omondi - 2018

Empirical evidence suggests that capital structure varies across firms facing different levels of information asymmetry, however, this evidence contradict the prediction of pecking order hypothesis. Although debt capacity constraints offer some explanation for this discrepancy, it fails to...

Persistent link: https://www.econbiz.de/10011771645

Heterogeneous effect of uncertainty on corporate investment : evidence from listed Korean firms

Kim, Cheonkoo; Park, Jungsoo; Park, Donghyun; Tian, Shu - In: International journal of empirical economics 2 (2023) 4, pp. 1-26

In this study, we analyse the effect of financial uncertainty on corporate investment using firm-level panel data from … the Republic of Korea. We find that financial uncertainty has a significant negative effect on corporate investment, and … constraints and investment irreversibility amplify the negative effect of uncertainty. The inverted U-shaped curve of the …

Persistent link: https://www.econbiz.de/10014491718

Corporate Investment and the Exchange Rate : The Financial Channel

Banerjee, Ryan - 2020

Using firm-level data for 18 major global economies, we find that the exchange rate affects corporate investment … through a financial channel: exchange rate depreciation dampens corporate investment through firm leverage and FX debt. These … findings are consistent with the predictions of a stylised model of credit risk in which exchange rates can affect investment …

Persistent link: https://www.econbiz.de/10012841849

Corporate Investment and the Exchange Rate : The Financial Channel

Banerjee, Ryan; Hofmann, Boris; Mehrotra, Aaron N. - 2021

Persistent link: https://www.econbiz.de/10013250472

Forecastability and statistical characteristics of aggregate oil and gas investments on the Norwegian Continental Shelf

Lorentzen, Sindre; Osmundsen, Petter - 2016

We investigate the potential for statistical forecasting of aggregate oil and gas investment on the Norwegian … random walk benchmark in an out-of-sample environment. Second, lags of investment growth, crude oil price growth and realized … volatility is found to be adequate predictors for the investment growth. Finally, there is a clear benefit from re-estimating the …

Persistent link: https://www.econbiz.de/10011544319

Exploring options to measure the climate consistency of real economy investments : the transport sector in Latvia

Dobrinevski, Alexander; Jachnik, Raphaël - 2020

highlights future investment and financing challenges, especially for road transport. The methodology piloted in this study can …

Persistent link: https://www.econbiz.de/10012422659

Investment, protection, ownership, and the cost of capital

Himmelberg, Charles P.; Hubbard, R. Glenn; Love, Inessa - 2002

We investigate the cost of capital in a model with an agency conflict between inside managers and outside shareholders. Inside ownership reflects the classic tradeoff between incentives and risk diversification, and the severity of agency costs depends on a parameter representing investor...

Persistent link: https://www.econbiz.de/10011623466

Political referenda and investment : evidence from Scotland

Azqueta-Gavaldon, Andres - 2020

We present evidence that referenda have a significant, detrimental outcome on investment. Employing an unsupervised … policy-related uncertainty. Examining the relationship of these indices with investment on a longitudinal panel of 3 … uncertainty to investment. Our preferred specification suggests that a one standarddeviation increase in Brexit uncertainty …

Persistent link: https://www.econbiz.de/10012212854