International College of Economics and Finance

ICEF Research Seminar by Stefano Sacchetto (IESE Business School)

On Thursday, March 9 at 4.40 pm, room 3211 (Shabolovka str. 26) ICEF held the Research Seminar.
Speaker: Stefano Sacchetto (IESE Business School)
Theme: "Heterogeneity in Corporate Investment and Financing Policies" joint with Theodosios Dimopoulos


Abstract: We empirically examine the degree to which persistent differences in corporate investment and financing policies across firms are driven by technological heterogeneity. We estimate a neoclassical model of investment for a sample of US manufacturing companies, allowing the parameters of the profit function and the capital adjustment costs to differ across firms. We find that firm-specific technological parameters explain a considerable fraction of the cross-sectional dispersion in investment{cash-ow sensitivities, and in the unobserved fixed heterogeneity in leverage, cash holdings and acquisition expenditures.

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