Advertising Expenditures, Number of Shareholders, and Stock Liquidity

Asset Liquidity and Stock Liquidity

We study the relation between the liquidity of the firm’s assets and the liquidity of financial claims on the assets, thereby linking corporate finance decisions to stock liquidity. Our model highlights an ambiguous relationship. While greater asset liquidity reduces uncertainty regarding valuation of assets-in-place, it increases future investments and the associated uncertainty. The model sho...

Corporate Liquidity Management and Future Investment Expenditures

This paper empirically examines whether additional future fixed capital and R&D investment expenditures induce firms to accumulate cash reserves while considering the role of market imperfections. Implementing a dynamic framework on a panel of US, UK and German companies, we find that firms make larger additions to cash holdings when they plan additional future R&D rather than fixed capital inv...

Stock Liquidity and Default Risk*

Essays on Stock Market Liquidity and Liquidity Risk Premium

..............................................................................................................................v Chapter One: Introduction ...................................................................................................1 Chapter Two: Liquidity, Macro Factors and the U.S. Equity Flows to Emerging Markets 3

Balancing Expenditures on Advertising and Information Technology

This study investigates a critical issue for E-retailers: balancing their spending on information technology and advertising. E-retailers often over-spend on advertisement to attract customers, but fail to support them due to inadequate spending on technology infrastructure. In this study we show that the demand generation and site capacity must be synchronized. E-retailers should place a highe...