Showing 211 - 220 of 108,012
This paper studies the role of leasing of productive assets. When capital is leased (or rented), it is more easily repossessed and hence leasing has higher debt capacity and relaxes financing constraints. However, leasing gives rise to an agency problem with regard to the care with which the...
Persistent link: https://www.econbiz.de/10005069226
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/10005031950
We use business register data for the United Kingdom to document the importance of the different channels that firms use to adjust their size. We show how the choice of adjustment channel impacts upon firm-level variables such as wages or productivity.
Persistent link: https://www.econbiz.de/10010597222
:This article treats the correlation between the investment projects and financing difficulties in a vicious circle … negotiation between the economic boom and the financial imbalances. Secondly, the investment decisions should be close connected …
Persistent link: https://www.econbiz.de/10008862622
The purpose of this paper is to empirically investigate the interaction between hedging, financing, and investment … differs for firms with different growth opportunities. We empirically find that high-growth firms increase their investment …, but not their leverage, by hedging. However, we also find that firms with few investment opportunities use derivatives to …
Persistent link: https://www.econbiz.de/10002772741
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
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
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
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
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