Costly External Equity
| Author | : Dongmei Li |
| Publisher | : |
| Total Pages | : 41 |
| Release | : 2008 |
| ISBN-10 | : OCLC:255953633 |
| ISBN-13 | : |
| Rating | : 4/5 ( Downloads) |
Book Synopsis Costly External Equity by : Dongmei Li
Download or read book Costly External Equity written by Dongmei Li and published by . This book was released on 2008 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: We document that the value, net stock issues, investment, and asset growth anomalies tend to be stronger in financially more constrained firms than in less constrained firms. This effect of financial constraints is distinct from that of financial distress on anomalies. Intuitively, costly external finance makes marginal costs of investment more sensitive to investment in more constrained firms, giving rise to a stronger negative correlation between investment and the discount rate.