Financial frictions and investment: requiem in Q

By Russell Cooper, J. Ejarque. 2003

250 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/663e827ee6c6035937b5c1641083b013cb627287

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Citations in the corpus

Which Firms Follow the Market? An Analysis of Corporate Investment Decisions (2010, unknown): “…q-theory, such as Hayashi (1982), shows that implausible conditions are necessary for marginal to equal average q, recent advances in q theory, such as Cooper and Ejarque (2003), Caballero (1999), and Hennessy (2004), suggest that average q–not marginal q–is the appropriate measure of fundamentals.”
Testing Q theory with financing frictions (2007, background): “ Cooper and Ejarque (2003) and Abel and Eberly (2004) show that cash flow proxies for the wedge between marginal q and average Q when the firm has market power.”
Labor and the Market Value of the Firm (2007, background): “Column (2), (3), and (4) allow one power parameter to be free, constraining the other two to the values estimated in column (1).”
How Q and Cash Flow Affect Investment without Frictions: An Analytic Explanation (2011, background): “Differentiating equation (8) with respect to Kt and setting the derivative equal to zero yields the optimal value of the capital stock”
Internal financial constraints, external financial constraints, and investment choice: Evidence from a panel of UK firms. (2008, background): “Also see Boyle and Guthrie (2003); Cooper and Ejarque (2001, 2003) ; Dasgupta and Sengupta (2003); and Moyen (2004) for other theoretical challenges to the hypothesis that a high sensitivity of investment to cash flow can be seen as evidence of financial constraints.”
The Role of Debt and Equity Finance Over the Business Cycle (2012, background): “2 In Covas and den Haan (2006), we show that the results are very similar when Canadian data are used.”
Dynamic Agency and the q Theory of Investment (2012, background): “See Gomes (2001), Cooper and Ejarque (2003), Cooper and Haltiwanger (2006), Abel and Eberly (2005), and Hennessy and Whited (2006), among others, for more recent contributions.”
Investment and Value: A Neoclassical Benchmark (2008, background): “In column (7), cash-ow enters signicantly in the investment regression because it is a proxy for z.”
Uncertainty and Investment Dynamics (2006, unknown): “…constraints (see Fazzari, Hubbard and Petersen (1988)), expectations of future demand growth or pro(cid:133)tability (see Bond et al. (2004)), or more generally measurement errors or mis-speci(cid:133)cations (see, for example, Erickson and Whited (2000) and Cooper and Ejarque (2003)).”
The Corporate Propensity to Save (2009, unknown): “…and Moyen (2004), who studies investment in a partial-equilibrium model of nancially constrained and unconstrained rms. Empirical papers include Cooper and Ejarque (2003), who estimate a partial equilibrium model to understand investment-cash ow sensitivities; and Hennessy and Whited (2005,…”
Financial Distress and the Cross Section of Equity Returns (2011, unknown): “…strategy of Lidvan, Sapriza, and Zhang (2008) and Gomes and Schmid (2008) who base their parameter choice on the values used in the existing macro and finance literature (e.g., Gomes (2001), Cooley and Quadrini (2001), Cooper and Ejarque (2003), Zhang (2005) and Hennessy and Whited (2005, 2007)).”
Rising Intangible Capital, Shrinking Debt Capacity, and the U.S. Corporate Savings Glut (2013, background): “proxies of investment frictions: (4-SIC) industry frequency of investment inaction and an indicator for whether there are investment spikes in the industry, which are both defined following Cooper and Haltiwanger [2006]; the skewness and kurtosis of annual aggregate industry investment, both based o”