Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5089117 | Journal of Banking & Finance | 2013 | 16 Pages |
Abstract
⺠We analyze effects of real and financial asset liquidity on corporate investment. ⺠Trade-off between liquidation costs and underinvestment costs. ⺠Low-liquidity firms exhibit negative investment sensitivities to liquid funds. ⺠Asset redeployability decreases the investment sensitivity to liquid funds. ⺠Sensitivity and use of debt financing depend on real and financial asset liquidity.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Christian Riis Flor, Stefan Hirth,