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Financial investment constraints. A panel threshold application to German firm level data

Tarassow, Artur - 2014

This paper attempts to test whether financial supply-side shifts explain the low-investment climate of private firms in …

Persistent link: https://www.econbiz.de/10010420866

Aggregate Risk and the Choice between Cash and Lines of Credit

Acharya, Viral V. - 2012

We model corporate liquidity policy and show that aggregate risk exposure is a key determinant of how firms choose between cash and bank credit lines. Banks create liquidity for firms by pooling their idiosyncratic risks. As a result, firms with high aggregate risk find it costly to get credit...

Persistent link: https://www.econbiz.de/10013102858

Investment Distortion by Collateral Requirement : Evidence from Japanese SMEs

Ogura, Yoshiaki - 2019

constraint causes over-investment if the price of pledgeable assets is expected to go up steeply while it causes under-investment … the problem of under-investment for many SMEs in a recession and casts doubt on the welfare effect of the loan …

Persistent link: https://www.econbiz.de/10012904316

Product Life Cycles in Corporate Finance

Hoberg, Gerard - 2019

We develop a novel 10-K text-based model of product life-cycles and examine firm investment policies. Conditioning on … the life cycle substantially improves the explanatory power of investment-Q models, and reveals a natural ordering of …

Persistent link: https://www.econbiz.de/10012899264

Rising Intangible Capital, Shrinking Debt Capacity, and the US Corporate Savings Glut

Falato, Antonio - 2018

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 Finance Under Safe Asset Scarcity

Kahn, R. Jay - 2020

How does government borrowing affect corporate financing and investment? This paper focuses on the role that government … estimate a general equilibrium model where long-lived corporations make endogenous corporate financing and investment decisions … are two effects: the first is to increase costs of capital, driving investment down. The second is to decrease the costs …

Persistent link: https://www.econbiz.de/10012850870

Rising Intangible Capital, Shrinking Debt Capacity, and the US Corporate Savings Glut

Falato, Antonio - 2020

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

How Does Government Borrowing Affect Corporate Financing and Investment?

Graham, John R. - 2014

debt is strongly negatively correlated with corporate debt and investment, but strongly positively correlated with … strategy influences firms' capital structures and investment policies …

Persistent link: https://www.econbiz.de/10013055316

Entrepreneurial Finance, Home Equity, and Monetary Policy

Jackson, Paul - 2020

is accepted as collateral. Optimal investment occurs for a range of positive nominal interest rates due to strategic …

Persistent link: https://www.econbiz.de/10012849547

Capital Taxes with Real and Financial Frictions.

DeBacker, Jason M. - Economics and Finance Department, Jennings A. Jones … - 2011

This paper studies how frictions, both real and financial, interact with capital tax policy in a dynamic, general equilibrium model with heterogeneous firms. Comparative statics show that tax policy can have substantially different effects depending upon the frictions present. Analytical and...

Persistent link: https://www.econbiz.de/10010860676