Who Bears Firm-Level Risk? Implications for Cash Flow Volatility
نویسندگان
چکیده
منابع مشابه
Who Bears Firm-Level Risk? Implications for Cash Flow Volatility
Public firms in the United States that provide better insurance against productivity shocks to their workers experience higher cash flow volatility. Difference in intra-firm risk sharing between workers and capital owners accounts for more than 50% of the variation in firm-level cash flow volatility. I develop a theory in which wages can act either as a hedge or as leverage, depending on the hi...
متن کاملEarnings Volatility, Cash Flow Volatility, and Informed Trading
I examine whether earnings that are smoother or more volatile than cash flows provide or garble information. Consistent with theories that predict more informed trading when public information is less informative, I find that bid-ask spreads and the probability of informed trading are higher both when earnings are smoother than cash flows and also when earnings are more volatile than cash flows...
متن کاملImporting, Exporting and Firm-Level Employment Volatility
In this paper, we use detailed trade and transactions data for the U.S. manufacturing sector to empirically analyze the direction and magnitude of the association between firm-level exposure to trade and the volatility of employment growth. We find that, relative to purely domestic firms, firms that only export and firms that both export and import are less volatile, whereas firms that only imp...
متن کاملHedging Corporate Cash Flow Risk
We consider optimal hedging decisions for a firm whose stock returns are affected by market returns and an idiosyncratic factor that is orthogonal to the market return. We show that the level of firm’s cash flows depend on the level of the market and the level of the idiosyncratic factor multiplicatively because of compounding. Minimizing the variance of the cash flow requires a substantial off...
متن کاملSector Fund Performance: Analysis of Cash Flow Volatility and Returns
Sector funds are an important and growing segment of the mutual fund industry. This paper analyzes the performance of 609 actively managed stock sector funds listed on the CRSP Survivor-Bias Free US Mutual Fund Database during 1972-1999. We use a five-factor model to document the following results. First, sector funds as a group neither outperform nor underperform their benchmarks. Second, sect...
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: SSRN Electronic Journal
سال: 2013
ISSN: 1556-5068
DOI: 10.2139/ssrn.2357050