東華大學圖書館 |

語系: 繁體中文

說明(常見問題)

回圖書館首頁

手機版館藏查詢

登入

回首頁

切換: 標籤 | MARC模式 | ISBD

Essays on corporate finance.

Yu, Jingbo.

FindBook

Google Book

Amazon

博客來

Essays on corporate finance.

紀錄類型:	書目-電子資源 : Monograph/item
正題名/作者:	Essays on corporate finance./
作者:	Yu, Jingbo.
面頁冊數:	91 p.
附註:	Source: Dissertation Abstracts International, Volume: 78-02(E), Section: A.
Contained By:	Dissertation Abstracts International78-02A(E).
標題:	Finance. -
電子資源:	http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=10144410
ISBN:	9781339995724

Essays on corporate finance.
Yu, Jingbo.

Essays on corporate finance. - 91 p.

Source: Dissertation Abstracts International, Volume: 78-02(E), Section: A.

Thesis (Ph.D.)--Temple University, 2016.

Much of the literature on investment-cash flow sensitivity examines only manufacturing firms, uses capital expenditure as a measure of investment, and uses operating cash flow as a measure of internal funds. Over the last several decades, due to outsourcing, the importance of manufacturing firms in the U.S. economy and the importance of capital expenditure as the primary type of investment have declined. The introduction of the Nasdaq exchange allowed smaller, less-profitable, and more human-capital intensive firms to become public, lowering the importance of operating cash flow as the primary source of internal funds. To take into account these trends, I introduce three innovations to the prior literature. (i) I include non-manufacturing firms. (ii) I broaden the definition of investment to include R&D and SG&A (which are both investments in human capital required at the innovation and marketing stages of the product life cycle), cash investment in subsidiaries and joint ventures, and the cash used to finance acquisitions. (iii) I broaden the definition of internal funds to include cash holding available at the beginning of the year. Empirically, non-manufacturing firms are more capital intensive than non-manufacturing firms, and hence excluding these firms could understate the true investment-cash flow sensitivity. Capital expenditure understates true investment, and hence excluding other forms of investment could also understate the true investment-cash flow sensitivity. Finally, operating cash flow understates true internal funds, and excluding cash holdings could overstate the true investment-cash flow sensitivity. The net effect of my proposed changes on the sensitivity is, therefore, an empirical issue. Overall, I document that investment is highly sensitive to cash flow----it is 570% higher than what I estimate using the definitions in prior literature----and this higher sensitivity is primarily caused by broadening the definition of investment. Further, though the sensitivity declines over time, the decline is modest and, importantly, the sensitivity is still economically and statistically significant in recent years. I identify three factors that have contributed to this decline: (i) the decline in Fed Funds rate (ii) changing firm characteristics and, (iii) changing firm composition. The changing characteristics and changing composition of firms are possibly due to macro trends such as outsourcing and the introduction of Nasdaq exchange. While outsourcing reduced firms' capital expenditure, the introduction of the Nasdaq facilitated listing of less profitable and more human-capital intensive firms. Such firms are likely to invest more in R&D and SG&A and are less reliant on operating cash flow for their investment. These macro trends altered firms' investment and cash flow mix, specifically decreasing the investment-cash flow ratio, which, in turn, contributed to the decrease in investment-cash flow sensitivity.

ISBN: 9781339995724Subjects--Topical Terms:

542899
Finance.

Essays on corporate finance.
LDR:03796nmm a2200277 4500 001 2116177
005 20170417135055.5
008 180830s2016 ||||||||||||||||| ||eng d
020 $a 9781339995724
035 $a (MiAaPQ)AAI10144410
035 $a AAI10144410
040 $a MiAaPQ $c MiAaPQ
100 1 $a Yu, Jingbo. $3 3277874
245 1 0 $a Essays on corporate finance.
300 $a 91 p.
500 $a Source: Dissertation Abstracts International, Volume: 78-02(E), Section: A.
500 $a Adviser: Lalitha Naveen.
502 $a Thesis (Ph.D.)--Temple University, 2016.
520 $a Much of the literature on investment-cash flow sensitivity examines only manufacturing firms, uses capital expenditure as a measure of investment, and uses operating cash flow as a measure of internal funds. Over the last several decades, due to outsourcing, the importance of manufacturing firms in the U.S. economy and the importance of capital expenditure as the primary type of investment have declined. The introduction of the Nasdaq exchange allowed smaller, less-profitable, and more human-capital intensive firms to become public, lowering the importance of operating cash flow as the primary source of internal funds. To take into account these trends, I introduce three innovations to the prior literature. (i) I include non-manufacturing firms. (ii) I broaden the definition of investment to include R&D and SG&A (which are both investments in human capital required at the innovation and marketing stages of the product life cycle), cash investment in subsidiaries and joint ventures, and the cash used to finance acquisitions. (iii) I broaden the definition of internal funds to include cash holding available at the beginning of the year. Empirically, non-manufacturing firms are more capital intensive than non-manufacturing firms, and hence excluding these firms could understate the true investment-cash flow sensitivity. Capital expenditure understates true investment, and hence excluding other forms of investment could also understate the true investment-cash flow sensitivity. Finally, operating cash flow understates true internal funds, and excluding cash holdings could overstate the true investment-cash flow sensitivity. The net effect of my proposed changes on the sensitivity is, therefore, an empirical issue. Overall, I document that investment is highly sensitive to cash flow----it is 570% higher than what I estimate using the definitions in prior literature----and this higher sensitivity is primarily caused by broadening the definition of investment. Further, though the sensitivity declines over time, the decline is modest and, importantly, the sensitivity is still economically and statistically significant in recent years. I identify three factors that have contributed to this decline: (i) the decline in Fed Funds rate (ii) changing firm characteristics and, (iii) changing firm composition. The changing characteristics and changing composition of firms are possibly due to macro trends such as outsourcing and the introduction of Nasdaq exchange. While outsourcing reduced firms' capital expenditure, the introduction of the Nasdaq facilitated listing of less profitable and more human-capital intensive firms. Such firms are likely to invest more in R&D and SG&A and are less reliant on operating cash flow for their investment. These macro trends altered firms' investment and cash flow mix, specifically decreasing the investment-cash flow ratio, which, in turn, contributed to the decrease in investment-cash flow sensitivity.
590 $a School code: 0225.
650 4 $a Finance. $3 542899
650 4 $a Economic theory. $3 1556984
690 $a 0508
690 $a 0511
710 2 $a Temple University. $b Business Administration and Finance. $3 3277875
773 0 $t Dissertation Abstracts International $g 78-02A(E).
790 $a 0225
791 $a Ph.D.
792 $a 2016
793 $a English
856 4 0 $u http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=10144410