European nations substitute between employment protection regulations and labor market expenditures (e.g., unemployment … adjustments than other labor insurance mechanisms. Venture capital and private equity investors are especially sensitive to these … labor adjustment costs. Nations favoring labor expenditures as the mechanism for providing worker insurance developed …

constraint. Our evidence indicates that constrained firms planned deeper cuts in tech spending, employment, and capital spending …

firms experience high costs of capital that are only partly mitigated by the presence of venture capital, the evidence for … high costs of R&D capital for large firms is mixed. Nevertheless, large established firms do appear to prefer internal … funds for financing such investments and they manage their cash flow to ensure this. Evidence shows that there are limits to …

that have positive cost of capital shocks and larger financing needs. We also find that firms respond with additional …This paper examines the link between disclosure and the cost of capital. We exploit an exogenous cost of capital shock … the typical research design that analyzes cost of capital responses to disclosure changes. In reversing the tests and …

do so depends on their availability of funding. Conversely, traders' funding, i.e., their capital and the margins they …

Harvey (2001) find that 74% of their survey firms use the CAPM for capital budgeting. We provide an explanation for these two … capital. Following McDonald and Siegel (1986), we argue that the hurdle premium depends on the value of the option to defer … value firms, even though they have a lower cost of capital …

private/public-sector guarantors of institutions, expect an appropriate risk-adjusted return in exchange for the financing and … risk-bearing that they provide. Customers of a financial intermediary, in contrast, provide financing in exchange for a …

frictions. Firms take their production, financing, and contractual decisions so as to maximize their value under rational …

markedly as public and private sectors look inward when external financing becomes prohibitively costly, altogether impossible …, driven importantly by increased "liability" home bias in finance and by official capital outflows. We present evidence from …