Financial Constraints, Asset Tangibility, and Corporate Investment
نویسندگان
چکیده
منابع مشابه
Financial Constraints, Asset Tangibility, andCorporate Investment*
Pledgeable assets support more borrowing, which allows for further investment in pledgeable assets. We use this credit multiplier to identify the impact of nancing frictions on corporate investment. The multiplier suggests that investmentcash ow sensitivities should be increasing in the tangibility of rmsassets (a proxy for pledgeability), but only if rms are nancially constrained. Our e...
متن کاملAsset Tangibility and Corporate Performance under External Financing
Asset values often fall sharply once assets are placed outside of the rm. When this happens, investors have fewer incentives to enforce their right to liquidate or reorganize the rm. Instead, they may allow an underperforming business to continue and may even re nance it under its current management. The problem that this creates is that rm insiders then have fewer incentives to implement va...
متن کاملEffects of Managerial Sentiments and Financial Constraints on Investment Sensitivity
Abstract: In the present study, managerial sentiment refers to the pleasant and optimistic feeling of the managers and decision makers in the companies. Optimism can be considered a spiritual state showing ones hope for the future. Talking about a company, it is the manger’s hope for future of the company. Accordingly, the present study examines effects of the managerial optimism on the relati...
متن کاملFinancial Constraints on Corporate Goodness ∗
An influential thesis, dubbed “Doing Well by Doing Good”, argues that corporate social responsibility is profitable. We establish that, if anything, the reverse is true: firms do good only when they do well in the sense of having financial slack. We model a firm’s optimal choices of capital and goodness subject to financial constraints. Lessconstrained firms spend more on goodness. We verify th...
متن کاملCorporate Income Taxes , Financial Constraints and Innovation ∗
We examine exogenous changes in state corporate income taxes over the 1988-2006 period and find that tax decreases significantly boost both the quantity, measured by the number of patents, and the quality, measured by citations per patent, of innovative output, while tax increases have little impact on innovation. Most of the impact of tax changes on innovation occurs two or more years after th...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Review of Financial Studies
سال: 2007
ISSN: 0893-9454,1465-7368
DOI: 10.1093/rfs/hhm019