Asymmetric Effects of the Financial Crisis : Collateral-Based Investment-Cash Flow Sensitivity Analysis.
Title:
Asymmetric Effects of the Financial Crisis : Collateral-Based Investment-Cash Flow Sensitivity Analysis.
Author:
Khramov, Vadim.
ISBN:
9781475554274
Personal Author:
Physical Description:
1 online resource (29 pages)
Series:
IMF Working Papers
Contents:
Cover -- Asymmetric Effects of the Financial Crisis: Collateral-Based Investment-Cash Flow Sensitivity Analysis -- 1. INTRODUCTION -- 2. MODEL -- 3. EMPIRICAL APPROACH -- 4. ESTIMATION RESULTS -- 5. CONCLUSIONS -- REFERENCES -- Appendix -- GMM-FD MODEL ESTIMATION RESULTS -- BETWEEN MODEL ESTIMATION RESULTS -- Tables -- TABLE I. Dynamics of the main variables. U.S. firms, 1990Q1-2011Q2. -- TABLE II. Distribution of U.S. firms by assets, 1990-2011 -- TABLE III. Estimation results of investment-cash flow sensitivity with the capital, 1990:Q1-2011Q1. -- TABLE IV. GMM-IV ESTIMATION RESULTS -- TABLE V. IV ESTIMATION RESULTS -- TABLE VI. FE MODEL ESTIMATION RESULTS -- TABLE VII. RE MODEL ESTIMATION RESULTS.
Abstract:
This paper uses the financial crisis of 2008 as a natural experiment to demonstrate that when measuring investment-cash flow sensitivity, the value of a firm's assets that can be used as collateral should be taken into account. Using panel data on U.S. firms from 1990 to 2011, it was found that the share of physical capital in assets has a strong influence on investment-cash flow sensitivity, which decreased substantially after the crisis when banks changed their expectations about the value of assets on firms' balance sheets. This paper deepens our understanding of firms' investment behavior.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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Electronic Access:
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