The purpose of this paper is to empirically investigate the interaction between hedging, financing, and investment decisions. This work is relevant in that theoretical predictions are not necessarily identical to those in the case where only two decisions are being made. We argue that the way in which hedging affects the firms’ financing and investing decisions differs for firms with different ...

Empirical literature on reallocation of resources during business cycles provides an evidence of increased reallocation of labor across firms during downturns. In this paper I build a theoretical model with search frictions in the labor market, that is consistent with this observation, and study implications of search and match frictions for the cross section of stock returns. In the model firm...

â â â â â  â â â  abstract â  beijing’s industrial structure is service-oriented with a high degree of economic openness, and gdp has maintained rapid growth. this paper analyzes the international financial crisis and the impact of china’s anti-crisis policies on beijing’s economic development as well as its transmission mechanism. impact index (excluding seasonal factors) and arma model ...

in recent years the science of tissue engineering has emerged as a powerful tool for the development of a novel set of tissue replacement parts and technologies. recent advances in the fields of biomaterials, stem cell technologies, growth factor field and biomimetics have created a unique set of opportunities for investigators to fabricate lab-grown tissues from combination of extracellular ma...

Book to market (BM) has long been associated with growth opportunities. We argue that after a negative shock to earnings, the BM of the firm is mainly determined by the shortterm recovery ability of the firm. Firms that have high (low) probability to recover from a negative shock will have low (high) BM after a negative shock. We confirm this relation both analytically and empirically and show ...

I grate thank was p G12 Asset Pricing Each company faces day to day investment opportunities. Just by staying in business the company is taking a decision of reinvesting. These oportunities have to be fairly valued to overcome misallocation of resources. When a company has a contingent cash flow (growth option), and under particular circumstances this stream of cash flow is valued using the dis...

Using a sample of 12,136 firm-years between 1993 and 1998, I examine the investment policies of firms in Japanese industrial groups. My findings indicate that internal capital markets among keiretsu firms are active. Investment at the firm level is positively correlated with cash flows from the remainder of the keiretsu. Furthermore, firms in industrial groups tend to invest more than predicted...