Evidence on the role of cash flow for investment

Article Abstract:

Previous research has posited the view that fluctuations in business cycles may be caused by capital market imperfections that propagate relatively modest shocks. However, evidence of the existence of this mechanism, termed the 'financial accelerator,' is viewed with skepticism since cash flow is not only an important predictor of investment but also a good indicator of investment opportunities. A framework that supports the existence of a financial accelerator is presented.

Author: Gilchrist, Simon, Himmelberg, Charles P.
Research, Models, Investments, Capital market, Capital markets, Cash flow

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Do stock price bubbles influence corporate investments?

Article Abstract:

A study showing that a firm raising capital stands to gain in a situation where investors are optimistic about the financial markets. The firm can price its securities at a higher rate and draw in investment at much lower rate than other financial sources, thereby increasing real investment.

Author: Huberman, Gur, Gilchrist, Simon, Himmelberg, Charles P.
Forecasts, trends, outlooks, Securities issued, listed, Analysis, Economic aspects, Forecasts and trends, Market trend/market analysis, Securities, Company securities, Stock markets, Stock market, Stock offerings

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Are there economies of scale in the demand for money by firms? Some panel data estimates

Article Abstract:

A study assessing the flexibility of scale in demand for money by firms is presented. The study is based on data from Spain, UK, and United States.

Author: Bover, Olympia, Watson, Nadine
United Kingdom, Market information - general, Spain, Other General Government Support, Coinage & Currency, Supply and demand, Money

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Subjects list: United States, Finance, Business enterprises, Company financing
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