A Unified Theory of Tobin's Q, Corporate Investment, Financing, and Risk Management

By Patrick Bolton, Hui Chen, Neng Wang. 2011

707 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/cfdc90b436d44bc9148b855a3dba661d4d81d06b

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Citations in the corpus

Equity Market Misvaluation, Financing, and Investment (2015, background): “It is important to note that the Bellman equation (17) does not imply that the model contains stochastic issuance costs, as in Bolton et al. (2013) or Eisfeldt and Muir (2012). This distinction is important for three reasons. First, the misvaluation shock directly affects the price of equity capital”
Uncertainty, Financial Frictions, and Investment Dynamics (2014, background): “As in Gomes (2001), Cooley and Quadrini (2001), Hennessy and Whited (2007), and Bolton et al. (2011), we capture this distortion by assuming As documented by Fama and French (2005), in an average year between 1973 and 2002, almost 60 percent of dividend paying firms also issued new shares in the sam”
A Lintner Model of Payout and Managerial Rents (2012, background): “Bolton, Chen, and Wang (2011) focus on the role of investment and corporate risk management for a financially constrained firm.”
Bank liquidity provision across the firm size distribution (2020, methodology): “For fully dynamic models with exogenous contracts, see Bolton et al. (2011) or Nikolov et al. (2019). 9Rewrite the participation constraint as E[ρ|ρ < ρ̂] = θz and use the property that the mean of the truncated normal”
Cash holdings, risk, and expected returns (2012, background): “…of optimal cash holdings are Huberman (1984), Almeida, Campello, and Weisbach (2004), Nikolov and Morellec (2009), Acharya, Almeida, and Campello (2007), Han and Qiu (2007), Asvanunt, Broadie, and Sundaseran (2010), Acharya, Davydenko, and Strebulaev (2011), and Bolton, Chen, and Wang (2011).”
Bank Capital, Liquid Reserves, and Insolvency Risk (2017, positive): “From a methodological perspective, our paper relates to the inventory models of Milne and Whalley (2001), Peura and Keppo (2006), Bolton, Chen, and Wang (2011), Décamps, Mariotti, Rochet, and Villeneuve (2011), and Hugonnier, Malamud, and Morellec (2014) in which financing costs lead banks or…”
Collateral and Capital Structure (2009, background): “2 Bolton, Chen, and Wang (2011) study risk management in a neoclassical model of corporate cash management; in contrast to our theory, they find that the hedge ratio decreases in firms' cash-to-capital ratio, and low cash firms hedge as much as possible while high cash firms do not hedge at all.”
Precautionary Savings with Risky Assets: When Cash Is Not Cash (2016, neutral): “(2011), Bolton et al. (2011), Hugonnier et al.”