Replication data for: Investment Behavior, Observable Expectations, and Internal Funds
Principal Investigator(s): View help for Principal Investigator(s) Jason G. Cummins; Kevin A. Hassett; Stephen D. Oliner
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
|---|---|---|---|
| 2013_data_20020734 | 12/07/2019 08:49:AM | ||
|
|
text/plain | 14.6 KB | 12/07/2019 03:49:AM |
Project Citation:
Cummins, Jason G., Hassett, Kevin A., and Oliner, Stephen D. Replication data for: Investment Behavior, Observable Expectations, and Internal Funds. Nashville, TN: American Economic Association [publisher], 2006. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-07. https://doi.org/10.3886/E116223V1
Project Description
Summary:
View help for Summary
We use earnings forecasts from securities analysts to construct a new measure of the
neoclassical fundamentals that drive investment spending. We find that investment responds significantly to our new measure of fundamentals but is insensitive to cash flow, even for firms typically thought to be liquidity constrained. These results have two key implications. First, fundamentals may be more important for investment spending than would be suggested by the results to date from investment-q models. Second, the positive cash-flow effects obtained in such models may reflect a failure to control properly for fundamentals rather than the presence of financial constraints. (JEL: D92, E22)
Scope of Project
JEL Classification:
View help for JEL Classification
D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
G32 Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
G32 Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Related Publications
Published Versions
Report a Problem
Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.
This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.