We propose a simple idea that corporate debt maturity should serve as a good indicator of future firm performance volatility. We show in a simple two-period model that the riskiness of corporate investment is a decreasing function of corporate debt maturity. If “observable” corporate debt...

We solve a model of firm dynamics with two states: cash and capital. The model high- lights how costly financing and default affect a firm’s cash management, investment, payout, and issuance policies. We find support in the data for new predictions: (1) issuance-to-capital ratios are...

We create a firm-level ChatGPT investment score, based on conference calls, that measures managers' anticipated changes in capital expenditures. We validate the score with interpretable textual content and its strong correlation with CFO survey responses. The investment score predicts future...

This paper uses ChatGPT, a large language model, to extract managerial expectations of corporate policies from disclosures. We create a firm-level ChatGPT investment score, based on conference call texts, that measures managers’ anticipated changes in capital expenditures. We validate the...

This study asks whether firms that invest more have higher degrees of internationalization and whether firms with higher degrees of internationalization perform better than those with lower degrees of internationalization. Using a large panel sample that consists of non-financial firms in five...

In this paper, we test the prediction that environmental efforts, presenting one dimension of corporate social responsibility, are positively related to firm performance. We analyze a panel sample of publicly listed non-financial firms in the Netherlands over the period 2001–2014 using two...

This paper analyses the impact of investment and financing decisions on the performance and value of Indonesian shipping companies. We use Economic Value Added (EVA) as the proxy to measure the company's performance and Tobin's Q (TOBIN-Q) to measure the company's value. This paper uses annual...

This note deals with the simplified case of a principal (e.g., a firm's board of directors) which delegates execution of an economic activity to a business unit (or a subsidiary firm) managed by a manager. It is assumed that the manager has no control over the cash flows injected into the unit...

Using data on private and public firms, this study documents that profitability follows a hump shape over the lifecycle of a firm. Profitability rises with age for young firms, remains elevated, and then declines slowly for mature firms. A dynamic lifecycle model captures the observed age...

Using a hand-collected administrative dataset, I develop a regulatory intensity index that tracks the total costs of compliance with federal paperwork regulations. I estimate firm-specific regulatory exposure based on the correlation between stock returns and unanticipated index changes....