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Does Firm Size Matter? Evidence on the Impacts of Liquidity Constraints on Firm Investment Behaviour in Germany

Audretsch, David B; Elston, Julie Ann - C.E.P.R. Discussion Papers - 1994

This paper examines the link between liquidity constraints and investment behaviour on the one hand, and firm size on … have investment functions which are more sensitive to liquidity constraints than do the larger enterprises. These results …

Persistent link: https://www.econbiz.de/10005123842

Financial Innovations and Macroeconomic Volatility

Jermann, Urban; Quadrini, Vincenzo - C.E.P.R. Discussion Papers - 2006

The volatility of US business cycle has declined during the last two decades. During the same period the financial structure of firms has become more volatile. In this paper we develop a model in which financial factors play a key role in generating economic fluctuations. Innovations in...

Persistent link: https://www.econbiz.de/10005791629

Entrepreneurial Learning, the IPO Decision, and the Post-IPO Drop in Firm Profitability

Pástor, Luboš; Taylor, Lucian; Veronesi, Pietro - C.E.P.R. Discussion Papers - 2007

We develop a model in which an entrepreneur learns about the average profitability of a private firm before deciding whether to take the firm public. In this decision, the entrepreneur trades off diversification benefits of going public against benefits of private control. The model predicts...

Persistent link: https://www.econbiz.de/10005666477

Political Connections and Preferential Access to Finance: The Role of Campaign Contributions

Claessens, Stijn; Feijen, Erik; Laeven, Luc - C.E.P.R. Discussion Papers - 2007

Using novel indicators of political connections constructed from campaign contribution data, we show that Brazilian firms that provided contributions to (elected) federal deputies experienced higher stock returns than firms that don’t around the 1998 and 2002 elections. This suggests...

Persistent link: https://www.econbiz.de/10005666705

Favouritism or Markets in Capital Allocation?

Giannetti, Mariassunta; Yu, Xiaoyun - C.E.P.R. Discussion Papers - 2007

incentives to investigate distant investment opportunities and allocate capital to entrepreneurs they are familiar with … (favouritism). If the pool of saving is relatively small, favouritism can lead to an efficient allocation of investment. As the … economy develops and its pool of saving increases, information production and the identification of distant investment …

Persistent link: https://www.econbiz.de/10005666824

Risky Investments with Limited Commitment

Cooley, Thomas F; Marimon, Ramon; Quadrini, Vincenzo - C.E.P.R. Discussion Papers - 2013

weaker commitment can raise the managerial incentives to undertake risky investment. In the general equilibrium, this change …

Persistent link: https://www.econbiz.de/10011083928

Public Debate and Stock Prices: Evidence from the Voting Premium

Braggion, Fabio; Giannetti, Mariassunta - C.E.P.R. Discussion Papers - 2013

An intense debate on the use of limited-voting shares developed in the UK during the 1950s. Using a unique hand-collected dataset, we show that negative news coverage of limited-voting shares is associated with an increase in the relative price of voting and limited-voting shares (the voting...

Persistent link: https://www.econbiz.de/10011084453

Stock Liquidity and Corporate Cash Holdings

Nyborg, Kjell G; Wang, Zexi - C.E.P.R. Discussion Papers - 2013

The paper contributes to the literature on corporate cash holdings by showing that there is a financial markets channel that affects corporations’ cash holdings. Leaning on the literature on stock price feedback to firm fundamentals, we advance the hypothesis that firms with more liquid stocks...

Persistent link: https://www.econbiz.de/10011084593

Option-Based Credit Spreads

Culp, Christopher L.; Nozawa, Yoshio; Veronesi, Pietro - C.E.P.R. Discussion Papers - 2014

Theoretically, corporate debt is economically equivalent to safe debt minus a put option on the firm’s assets. We empirically show that indeed portfolios of long Treasuries and short traded put options ("pseudo bonds") closely match the properties of traded corporate bonds. Pseudo bonds...

Persistent link: https://www.econbiz.de/10011145468

Finance, Investment and Growth

Carlin, Wendy; Mayer, Colin - C.E.P.R. Discussion Papers - 1999

there is a relation in terms of both industry growth rates and shares of output devoted to R&D. Investment in R&D rather …

Persistent link: https://www.econbiz.de/10005114188