Short Interest Ratio, Financial Constraints and Corporate Investment

Effects of Managerial Sentiments and Financial Constraints on Investment Sensitivity

Abstract: In the present study, managerial sentiment refers to the pleasant and optimistic feeling of the managers and decision makers in the companies. Optimism can be considered a spiritual state showing ones hope for the future. Talking about a company, it is the manger’s hope for future of the company. Accordingly, the present study examines effects of the managerial optimism on the relati...

Financial Constraints on Corporate Goodness ∗

An influential thesis, dubbed “Doing Well by Doing Good”, argues that corporate social responsibility is profitable. We establish that, if anything, the reverse is true: firms do good only when they do well in the sense of having financial slack. We model a firm’s optimal choices of capital and goodness subject to financial constraints. Lessconstrained firms spend more on goodness. We verify th...

Corporate Income Taxes , Financial Constraints and Innovation ∗

We examine exogenous changes in state corporate income taxes over the 1988-2006 period and find that tax decreases significantly boost both the quantity, measured by the number of patents, and the quality, measured by citations per patent, of innovative output, while tax increases have little impact on innovation. Most of the impact of tax changes on innovation occurs two or more years after th...

Investment, R&d and Financial Constraints in Britain and Germany Investment, R&d and Financial Constraints in Britain and Germany

This paper tests for the importance of cash flow on investment in fixed capital and R&D using firm-level panel data in two countries between 1985 and 1994. For German firms, cash flow is not informative in simple econometric models of fixed investment or R&D. In identical specifications for British firms, cash flow is informative about investment, although not about the level of R&D spending co...

Conflicts of Interest Corporate Governance and Financial Markets