منابع مشابه
Investment, Uncertainty, and Liquidity*
Preliminary and Incomplete Please do not quote * We are grateful to Peter Grundy for valuable research assistance.
متن کاملTurnover: Liquidity or Uncertainty?
The paper shows that turnover proxies for firm-specific uncertainty, not liquidity risk. I show that turnover is unrelated to several alternative measures of liquidity risk and that liquidity risk factors cannot explain why higher turnover predicts lower future returns. I show that, because high turnover firms have high uncertainty, high turnover firms beat the CAPM when aggregate volatility in...
متن کاملUncertainty Determinants of Corporate Liquidity
This paper investigates the link between the optimal level of non–financial firms’ liquid assets and uncertainty. We develop a partial equilibrium model of precautionary demand for cash that shows that firms are likely to change their liquidity ratio in response to changes in uncertainty. We test this proposition using a panel of non–financial US firms drawn from COMPUSTAT quarterly database co...
متن کاملInvestment , Liquidity , and Financing under Uncertainty ∗
We develop a model of investment under uncertainty for a firm facing external financing costs. Such a firm prefers to fund its investment through internal funds, so that the firm’s optimal investment policy and value now depend on the size of its retained earnings. We show that the standard real options results are significantly modified when there are external financing costs. Importantly the ...
متن کاملCorporate liquidity , and dividend policy under uncertainty
We examine firm valuation with optimal liquidity (retained earnings) and dividend choice under revenue uncertainty that incorporates debt financing and bankruptcy costs. We revisit the conditions for dividend policy irrelevancy and the role of retained earnings and dividends. Retained earnings have a net positive impact on firm value in the presence of growth options, high external financing co...
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 Economic Dynamics
سال: 2009
ISSN: 1094-2025
DOI: 10.1016/j.red.2008.10.002