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Short-termism, shareholder payouts, and investment in the EU

Fried, Jesse M.; Wang, Charles C. Y. - 2020

Investor-driven "short-termism" is said to harm EU public firms' ability to invest for the long term, prompting calls for the EU to better insulate managers from shareholder pressure. But the evidence offered---rising levels of repurchases and dividends---is incomplete and misleading: it ignores...

Persistent link: https://www.econbiz.de/10012511344

Leveraged Investments and Agency Conflicts When Cash Flows are Mean Reverting

Glover, Kristoffer J. - 2016

partially debt-financed investments. In a partial equilibrium setting we find that such agency costs are significantly lower …

Persistent link: https://www.econbiz.de/10013007967

Financial Constraints, Uses of Funds and Firm Growth : An International Comparison

Maksimovic, Vojislav; Demirgüç-Kunt, Asli - 2005

, in particular, long-term debt. An active, though not necessarily large, stock market and a large banking sector are also …

Persistent link: https://www.econbiz.de/10014048292

Seeking q : The Marginal Efficiency of Liquidity and Its Effect on Investment Financing and Valuation

Copeland, Thomas E. - 2016

Just as portfolio managers are seeking positive alpha, corporate investors are seeking Tobin's q larger than 1. The present paper develops a quantitative framework in which this process can be analyzed, and prescriptions for concrete financing decisions can be obtained. Specifically, we focus on...

Persistent link: https://www.econbiz.de/10013006863

Regional Financial Development and Financing Constraints in R&D Investments : A Panel Study of Chinese High-Tech Firms

Li, Guo - 2014

We apply the Q-Theory investment model to a panel of high-tech firms listed on the Chinese stock market during 2008 and 2011, to study the effect of financial development in reducing financing constraints of firm's R&D growth. Based on the sizable discrepancies of stock market and financial...

Persistent link: https://www.econbiz.de/10013050213

Regional Financial Developments and Research and Development Investment – Cash Flow Sensitivity : Evidence on Chinese Public High-Tech Companies

Zhu, Feifei - 2017

In a sample of 485 Chinese public high-tech companies, we show that the R&D investment is significantly dependent on internal cash flow. Based on the sizable discrepancies of stock market and financial intermediary developments in the East, Middle and West regions of China, empirical estimation...

Persistent link: https://www.econbiz.de/10012962883

Mandatory Pollution Abatement, Financial Constraint and Firm Investment

Dang, Tri Vi - 2020

This paper analyses the effect of mandatory pollution abatement on U.S. corporate investment and performance and shows that environmental regulation can stimulate investment in innovation. The following set of theoretical and empirical results are presented. For financially unconstrained firms,...

Persistent link: https://www.econbiz.de/10012851241

Overinvestment, leverage and financial system liquidity : a challenging approach

López-de-Foronda, Óscar; López-de-Silanes, Florencio; … - In: Business research quarterly : BRQ 22 (2019) 2, pp. 96-104

The aim of this paper is to analyse the influence of financial system liquidity and corporate leverage on a firm …'s overinvestment. We posit that when external funds are easily available, as in expansionary monetary periods, debt loses its … traditional role as a managerial control mechanism. Instead, the supply of systemic liquidity results in corporate leverage …

Persistent link: https://www.econbiz.de/10012015933

Marginal Tax Rates and Investment Behavior of Small and Large Firms

Eskandari, Ruhollah - 2020

Do changes in the marginal tax rate of corporations affect their investment? Using a unique dataset on balance sheet … and income of firms from 1956-2008 and a new measure of exogenous changes in corporations marginal tax rate, this paper … shows that the investment response of large firms to a marginal tax cut is almost twice the response of small firms …

Persistent link: https://www.econbiz.de/10012849155

Institutional Quality, Investment Efficiency and the Choice of Public-Private Partnerships

Dao, Hong Nhung - 2017

By using a sample of 625 Public-Private Partnership (PPP) private sector firms that covers the years from 1980 to 2015 and straddles nine countries at varying degrees of economic development and PPP markets, we find that the motivation of the firms that undertake PPP investments varies. While...

Persistent link: https://www.econbiz.de/10012964966