The Impact of Capital Market Imperfections on Capital and R & D Investment and Financial Decisions PDF Download

Author: Beata Coldbeck
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
The aim of this study is to provide more insights into our understanding of several issues pertaining to the evolution of a firms' investment - cash flow sensitivity (ICFS hereafter), the evolution of a firms' research and development (R&D) ICFS and the determinants of a firms' R&D investment over total investment1 (R&D/TINV) ratio. This thesis uses non-financial US and UK publicly listed firms. Our work consists of a number of important and original aspects that potentially contribute to the literature on capital market imperfections. The study of the ICFS comprises one of the largest literatures in corporate finance, yet little is known about the ICFS trend over time, and the literature has largely ignored that firms invest simultaneously in two types of investment (capital and R&D) and there is some substitutability between them, thus the two decisions need to be studied together. Initially we show that over time the ICFS: (i) declines for physical investment, (ii) is negative and increases for R&D, and (iii) is negative and fluctuates around the same level during the pre-crisis period and positive during the financial crisis period for R&D/TINV ratio. We argue that these findings can largely be explained by the changing composition of investment and the rising share of the firms with persistent negative cash flows. Secondly, substantial differences are found between the a priori subsamples of financially constrained and unconstrained group of firms and between US and UK firms as well as between pre-crisis and financial crisis periods.

Author: Beata Coldbeck
Publisher:
ISBN:
Category : Cash flow
Languages : en
Pages : 0

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Author: Robert Lensink
Publisher: Edward Elgar Publishing
ISBN: 9781782541240
Category : Business & Economics
Languages : en
Pages : 176

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Book Description
This book presents an up-to-date overview of the theory as well as the empirics of the relationship between investment, financial imperfections and uncertainty. After reviewing the capital market imperfections literature and the empirical results, the authors discuss both traditional investment models with uncertainty and the more modern option based models. They present an overview of empirical results of the modelling of investment under uncertainty. In these examples the effects of capital market imperfections on investment are carefully considered. The authors conclude that there is overwhelming empirical support for a negative uncertainty-investment relationship. This book should appeal to academics with an interest in investment theory, professionals in the financial sector and students of macroeconomics and finance. "Investment, Capital Market Imperfections, and Uncertainty" assumes only a basic knowledge of mathematics and is easily accessible.

Author: Fidel Jaramillo
Publisher: World Bank Publications
ISBN:
Category : Mercado de capitales - Ecuador
Languages : en
Pages : 33

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Author: R. Glenn Hubbard
Publisher:
ISBN:
Category :
Languages : en
Pages : 65

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Book Description
Over the past decade, a number of researchers have extended conventional models of business fixed investment to incorporate a role for financial constraints' in determining investment. This paper reviews developments and challenges in this empirical research, and uses advances in models of information and incentive problems to motivate those developments and challenges. First, I describe analytical underpinnings of models of capital-market imperfections in the investment process, and illustrate the principal testable implications of those models. Second, I motivate tests and describe and critique existing empirical studies. Third, the review considers applications of the underlying models to a range of investment activities, including inventory investment, Ramp;D, employment demand, pricing by imperfectly competitive firms, business formation and survival, and risk management. Fourth, I discuss implications of this research program for analysis of effects of investment on monetary policy and tax policy. Finally, I examine some potentially fruitful avenues for future research.

Author: Paul Butzen
Publisher: Edward Elgar Publishing
ISBN: 9781781956335
Category : Business & Economics
Languages : en
Pages : 354

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Book Description
This book provides coherent theoretical and empirical analysis of firms’ investment and financing decisions. It assesses the role of uncertainty, financial imperfections, corporate governance and taxation. Evidence is obtained using several unique and high quality microeconomic data-sets, which explore features seldom addressed.

Author: Simon Gerard Gilchrist
Publisher:
ISBN:
Category :
Languages : en
Pages : 278

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Author: Olatundun Adelegan
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659260100
Category :
Languages : en
Pages : 264

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Book Description
Olatundun Janet Adelegan is a Professor of Economics with specialization in Financial Economics, Corporate Finance and Investments, Corporate governance and Control, Macroeconomics and Financial sector issues, Money and Capital Markets Development in Africa. She has 18 years work experience as a faculty in the University and 2 years in an International Organization. She has about 50 international research publications to her credit. She has also attended and presented papers at several International Conferences.

Author: Michael Marquardt
Publisher: GRIN Verlag
ISBN: 3640565371
Category : Business & Economics
Languages : en
Pages : 81

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Book Description
Research Paper (undergraduate) from the year 2010 in the subject Business economics - General, grade: 1,3, University of Applied Sciences Northwestern Switzerland, language: English, abstract: The Efficient market hypothesis can be considered as part of rational economics but it does not specify at all how individuals should or will act. Therefore it might be a useful model of the functioning of the market as a whole but it does not explain the behaviors of investors as well as managers and other participants. While the Efficient market hypothesis deals as a basis for understanding the normal working of the markets, from time to time it might happen that the market as a whole or an individual stock may act irrationally. Such behavior is well known and generally occurs when the market price of a share turns away from its intrinsic value. The result is what commonly is called a bubble. This term is often used but the reasons for the occurrence are quite unclear. In fact, at the same time as the market as a whole has become more efficient, instances of irrationality have become more common or at least appear to be. Therefore we try to discuss the question why capital markets, which are considered as efficient and perfect in theory, are volatile and imperfect in reality. The paper responds to this question by discussing mainly the irrational behavior of people by turning into the field of psychology. Furthermore it seeks for approaches of explanation conducted by different investment strategies containing among others an increased use of derivative instruments or single trades based on massive capacity which therefore influence prices. Methodology and Structure of the paper In general the paper can be divided in 3 parts, a theoretical as well as an analytical one and a final point the Conclusion (Part C) which sums up the basic findings of the paper. Whereas Part A can be regarded as delivering the theoretical background, Part B contains the empirical analysis b

Author: Giorgio Calcagnini
Publisher: Springer Science & Business Media
ISBN: 3790821314
Category : Business & Economics
Languages : en
Pages : 237

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Book Description
This book is a collection of eleven papers concerned with the effects of market imperfections on the decision-making of economic agents and on economic policies that try to correct the inefficient market outcomes due to those imperfections. As a consequence, real and financial imperfections are related : economic decisions are simultaneously affected by imperfections present both in real and financial markets. Notwithstanding the obvious fact that market interdependence is not novel, scholar interests are typically concentrated on the specific relationship among economic decisions originating from particular imperfections. This explains why, in the case of perfect financial markets, we can speak of "the" us.