Hospital Investment Decisions and the Cost of Capital

Inventory investment and the cost of capital

We examine the relation between inventory investment and the cost of capital in the time series and the cross section. We find consistent evidence that risk premiums, rather than real interest rates, are strongly negatively related to future inventory growth at the aggregate, industry, and firm levels. The effect is stronger for firms in industries that produce durables rather than nondurables,...

Regulatory Risk, Cost of Capital and Investment Decisions in the Telecommunications Industry

The theoretical interest in the relationship between changes in regulatory policies and investment in infrastructure in the telecommunications industry has sparked a new interest in empirical studies worldwide. It is argued that European and American firms have a different investment performance and this may be explained by the difference in the treatment of the capital cost across jurisdiction...

Optimizing Capital Investment Decisions at Intel Corporation

Growthopportunities and Investment Decisions: a New Perspective Onthe Cost of Capital

Recently studies have suggested that growth opportunities possessed by a firm can be regarded as real options and applied contingent-claims analysis to evaluate them in conjunction with the firm's operating environment (see Stulz, 1982; Baldwin, Mason and Ruback, 1983; Kester, 1984 and 1986; Brennan and Schwartz, 1985; Mason and Merton, 1985; Majd and Pindyck, 1987; Pindyck, 1988; and Chung and...

Hospital Capital Investment During the Great Recession

Hospital capital investment is important for acquiring and maintaining technology and equipment needed to provide health care. Reduction in capital investment by a hospital has negative implications for patient outcomes. Most hospitals rely on debt and internal cash flow to fund capital investment. The great recession may have made it difficult for hospitals to borrow, thus reducing their capit...