Corporate Policies with Temporary and Permanent Shocks
S Gryglewicz
- Fonction : Auteur
E Morellec
- Fonction : Auteur
Stephane Villeneuve
- Fonction : Auteur
- PersonId : 930930
Résumé
We model the financing, cash holdings, and hedging policies of a firm facing financing frictions and subject to permanent and transitory cash flow shocks. The permanent and transitory shocks generate distinct, sometimes opposite, effects on corporate policies. We use the model to develop a rich set of empirical predictions. In our model, correlated permanent and transitory shocks imply less risk, lower cash savings, and a drop in the value of credit lines. The composition of cash-flow shocks affects the cash-flow sensitivity of cash, which can be positive or negative. Optimal hedging of permanent and transitory shocks may involve opposite positions
Domaines
Gestion et managementFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Corporate Policies with Temporary and Permanent Shocks
|
Résumé |
en
We model the financing, cash holdings, and hedging policies of a firm facing financing frictions and subject to permanent and transitory cash flow shocks. The permanent and transitory shocks generate distinct, sometimes opposite, effects on corporate policies. We use the model to develop a rich set of empirical predictions. In our model, correlated permanent and transitory shocks imply less risk, lower cash savings, and a drop in the value of credit lines. The composition of cash-flow shocks affects the cash-flow sensitivity of cash, which can be positive or negative. Optimal hedging of permanent and transitory shocks may involve opposite positions
|
Auteur(s) |
Jean-Paul Decamps
1, 2
, S Gryglewicz
, E Morellec
, Stephane Villeneuve
1, 2
1
TSM -
Toulouse School of Management Research
( 520525 )
- UNIVERSITE TOULOUSE CAPITOLE Bâtiment J2 rue du Doyen Gabriel Marty 31042 TOULOUSE CEDEX 9
- France
2
TSE-R -
Toulouse School of Economics
( 93477 )
- Manufacture de Tabacs, 21 allées de Brienne 31000 Toulouse
- France
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Date de publication |
2017
|
Volume |
30
|
Numéro |
1
|
Page/Identifiant |
162-210
|
Domaine(s) |
|
DOI | 10.1093/rfs/hhw07 |
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