We examine the determinants and implications of holdings of cash and marketablequot; securities by publicly traded U.S. firms in the 1971-1994 period. Firms with strong growthquot; opportunities and riskier cash flows hold relatively high ratios of cash to total assets. Firmsquot; that have the...

Large diversified corporations have been widely criticized as being inefficient innovators with an orientation to maximizing short-term profits. This study investigates this criticism by testing whether the number of new products introduced per Ramp;D dollar is lower among more diversified...

In a roundtable published in this journal a year ago, there was a clear consensus that the R&D function in big pharma was inefficient and in need of major restructuring, possibly through increased investments by venture capital and private equity firms. In this discussion, an accomplished group...

Many recent game-theoretic models suggest that with asymmetric information it can be profitable for firms to acquire a reputation for toughness to discourage later entry. We identify institutional arrangements which firms must undertake if predatory commitments are to be credible. For example,...

The Council of Institutional Investors is a group of public and private pension funds which collectively own over $800 billion in financial assets within the United States. The Council has provided a forum for these funds to coordinate and communicate with each other on a variety of matters...