منابع مشابه
Investment , Tobin ’ s q , and Interest Rates ∗
To study the impact of stochastic interest rates and capital illiquidity on investment and firm value, we incorporate a widely-used arbitrage-free term structure model of interest rates into a standard q-theoretic framework. Our generalized q model informs us to use corporate credit-risk information to predict investments when empirical measurement issues of Tobin’s average q are significant (e...
متن کاملDiversification , Ricardian Rents , and Tobin ' s q
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متن کاملInvestor Protection , Diversification , Investment , and Tobin ’ s q ∗
We develop a dynamic incomplete-markets model where an entrenched insider, facing imperfect investor protection and non-diversifiable illiquid business risk, makes interdependent consumption, portfolio choice, expropriation, corporate investment, ownership, and business exit decisions. Unlike in the first-best, the insider’s tradeoff between private benefits and under-diversification costs lead...
متن کاملInternet Appendix for “ A Unified Theory of Tobin ’ s q , Corporate Investment , Financing , and Risk Management ” ∗
This appendix is organized as follows. Section A examines our model’s implication for the risk and return on equity, in particular, on how beta changes with the firm’s cash holdings. Section B studies the comparative statics of the stationary cash-capital ratio distributions. Section C calculates the endogenous average financing costs. Section D presents a model that endogenizes the credit line...
متن کاملOn the long - run equilibrium value of Tobin ' s average
This note considers Tobin’s average Q in a framework where firms finance investment by equities and debt. The determination of its long-run equilibrium value Qo is based on positing equality of the loan rate and, adjusted for a risk premium, the return on equities. Qo can thus be characterized as a ratio of two rates representing the somewhat modified interest costs and profits of the firms. Th...
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ژورنال
عنوان ژورنال: Politická ekonomie
سال: 2005
ISSN: 0032-3233,2336-8225
DOI: 10.18267/j.polek.524