Asymmetric Information, Financing Constraints, and Investment
The results of a number of theoretical papers lead to the hypothesis that financial variables affect capital spending because of asymmetric information in capital markets. We review the relevant theory and test this hypothesis with a large sample of firm data. The results show that financial variabl...
Gespeichert in:
| Veröffentlicht in: | The review of economics and statistics 1987-08, Vol.69 (3), p.481-487 |
|---|---|
| Hauptverfasser: | , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 487 |
|---|---|
| container_issue | 3 |
| container_start_page | 481 |
| container_title | The review of economics and statistics |
| container_volume | 69 |
| creator | Fazzari, Steven M. Athey, Michael J. |
| description | The results of a number of theoretical papers lead to the hypothesis that financial variables affect capital spending because of asymmetric information in capital markets. We review the relevant theory and test this hypothesis with a large sample of firm data. The results show that financial variables such as cash flow and interest expense add significant explanatory power to investment equations based on Jorgenson's neoclassical model, with a CAPM specification for the firm's cost of capital, and a sales-accelerator model. The analysis, therefore, links recent theoretical work on capital markets to long-standing empirical debates in the investment literature. |
| doi_str_mv | 10.2307/1925536 |
| format | Article |
| fullrecord | <record><control><sourceid>jstor_proqu</sourceid><recordid>TN_cdi_proquest_journals_194677250</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><jstor_id>1925536</jstor_id><sourcerecordid>1925536</sourcerecordid><originalsourceid>FETCH-LOGICAL-c301t-64b8d635f8616e4c31b7459451a5411b232437a0aabd895606d65bdf36adc3253</originalsourceid><addsrcrecordid>eNp10M1KAzEUBeAgCo5VfIVBBTcdvTc3yTQLF2WwWii40fWQ-ZMpTlKTVOjbO6XddnU2H-fAYewW4YkT5M-ouZSkzliCkiDTKPg5SwBIZEqSvGRXIawBAHOkhL3Mw24Y2uj7Ol3azvnBxN7ZabrorbF1b7_TwtkQveltDNPU2GZ0f22IQ2vjNbvozE9ob445YV-L18_iPVt9vC2L-SqrCTBmSlSzRpHsZgpVK2rCKhdSC4lGCsSKExeUGzCmamZaKlCNklXTkTJNTVzShN0dejfe_W7H8XLttt6OkyVqofKcSxjR_UnENWjBBeyrHg-q9i4E33blxveD8bsSodwfWB4PHOXDQa5DdP4k-wf7JWqg</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>1290942405</pqid></control><display><type>article</type><title>Asymmetric Information, Financing Constraints, and Investment</title><source>Jstor Complete Legacy</source><source>Business Source Complete</source><source>Periodicals Index Online</source><source>JSTOR Mathematics & Statistics</source><creator>Fazzari, Steven M. ; Athey, Michael J.</creator><creatorcontrib>Fazzari, Steven M. ; Athey, Michael J.</creatorcontrib><description>The results of a number of theoretical papers lead to the hypothesis that financial variables affect capital spending because of asymmetric information in capital markets. We review the relevant theory and test this hypothesis with a large sample of firm data. The results show that financial variables such as cash flow and interest expense add significant explanatory power to investment equations based on Jorgenson's neoclassical model, with a CAPM specification for the firm's cost of capital, and a sales-accelerator model. The analysis, therefore, links recent theoretical work on capital markets to long-standing empirical debates in the investment literature.</description><identifier>ISSN: 0034-6535</identifier><identifier>EISSN: 1530-9142</identifier><identifier>DOI: 10.2307/1925536</identifier><identifier>CODEN: RECSA9</identifier><language>eng</language><publisher>Cambridge, Mass: Elvesier Science Publishers B.V. (North-Holland)</publisher><subject>Capital assets ; Capital costs ; Capital investments ; Capital markets ; Cash flow ; Coefficients ; Economic models ; Economic theory ; Finance ; Financial investments ; Financing ; Information asymmetry ; Investment policy ; Investment spending ; Investments ; Regression analysis</subject><ispartof>The review of economics and statistics, 1987-08, Vol.69 (3), p.481-487</ispartof><rights>Copyright 1987 The President and Fellows of Harvard College</rights><rights>Copyright MIT Press Journals Aug 1987</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c301t-64b8d635f8616e4c31b7459451a5411b232437a0aabd895606d65bdf36adc3253</citedby></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.jstor.org/stable/pdf/1925536$$EPDF$$P50$$Gjstor$$H</linktopdf><linktohtml>$$Uhttps://www.jstor.org/stable/1925536$$EHTML$$P50$$Gjstor$$H</linktohtml><link.rule.ids>314,776,780,799,828,27846,27901,27902,57992,57996,58225,58229</link.rule.ids></links><search><creatorcontrib>Fazzari, Steven M.</creatorcontrib><creatorcontrib>Athey, Michael J.</creatorcontrib><title>Asymmetric Information, Financing Constraints, and Investment</title><title>The review of economics and statistics</title><description>The results of a number of theoretical papers lead to the hypothesis that financial variables affect capital spending because of asymmetric information in capital markets. We review the relevant theory and test this hypothesis with a large sample of firm data. The results show that financial variables such as cash flow and interest expense add significant explanatory power to investment equations based on Jorgenson's neoclassical model, with a CAPM specification for the firm's cost of capital, and a sales-accelerator model. The analysis, therefore, links recent theoretical work on capital markets to long-standing empirical debates in the investment literature.</description><subject>Capital assets</subject><subject>Capital costs</subject><subject>Capital investments</subject><subject>Capital markets</subject><subject>Cash flow</subject><subject>Coefficients</subject><subject>Economic models</subject><subject>Economic theory</subject><subject>Finance</subject><subject>Financial investments</subject><subject>Financing</subject><subject>Information asymmetry</subject><subject>Investment policy</subject><subject>Investment spending</subject><subject>Investments</subject><subject>Regression analysis</subject><issn>0034-6535</issn><issn>1530-9142</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>1987</creationdate><recordtype>article</recordtype><sourceid>K30</sourceid><recordid>eNp10M1KAzEUBeAgCo5VfIVBBTcdvTc3yTQLF2WwWii40fWQ-ZMpTlKTVOjbO6XddnU2H-fAYewW4YkT5M-ouZSkzliCkiDTKPg5SwBIZEqSvGRXIawBAHOkhL3Mw24Y2uj7Ol3azvnBxN7ZabrorbF1b7_TwtkQveltDNPU2GZ0f22IQ2vjNbvozE9ob445YV-L18_iPVt9vC2L-SqrCTBmSlSzRpHsZgpVK2rCKhdSC4lGCsSKExeUGzCmamZaKlCNklXTkTJNTVzShN0dejfe_W7H8XLttt6OkyVqofKcSxjR_UnENWjBBeyrHg-q9i4E33blxveD8bsSodwfWB4PHOXDQa5DdP4k-wf7JWqg</recordid><startdate>19870801</startdate><enddate>19870801</enddate><creator>Fazzari, Steven M.</creator><creator>Athey, Michael J.</creator><general>Elvesier Science Publishers B.V. (North-Holland)</general><general>Harvard University Press, etc</general><general>MIT Press Journals, The</general><scope>AAYXX</scope><scope>CITATION</scope><scope>EOLOZ</scope><scope>FKUCP</scope><scope>IOIBA</scope><scope>K30</scope><scope>PAAUG</scope><scope>PAWHS</scope><scope>PAWZZ</scope><scope>PAXOH</scope><scope>PBHAV</scope><scope>PBQSW</scope><scope>PBYQZ</scope><scope>PCIWU</scope><scope>PCMID</scope><scope>PCZJX</scope><scope>PDGRG</scope><scope>PDWWI</scope><scope>PETMR</scope><scope>PFVGT</scope><scope>PGXDX</scope><scope>PIHIL</scope><scope>PISVA</scope><scope>PJCTQ</scope><scope>PJTMS</scope><scope>PLCHJ</scope><scope>PMHAD</scope><scope>PNQDJ</scope><scope>POUND</scope><scope>PPLAD</scope><scope>PQAPC</scope><scope>PQCAN</scope><scope>PQCMW</scope><scope>PQEME</scope><scope>PQHKH</scope><scope>PQMID</scope><scope>PQNCT</scope><scope>PQNET</scope><scope>PQSCT</scope><scope>PQSET</scope><scope>PSVJG</scope><scope>PVMQY</scope><scope>PZGFC</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>19870801</creationdate><title>Asymmetric Information, Financing Constraints, and Investment</title><author>Fazzari, Steven M. ; Athey, Michael J.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c301t-64b8d635f8616e4c31b7459451a5411b232437a0aabd895606d65bdf36adc3253</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>1987</creationdate><topic>Capital assets</topic><topic>Capital costs</topic><topic>Capital investments</topic><topic>Capital markets</topic><topic>Cash flow</topic><topic>Coefficients</topic><topic>Economic models</topic><topic>Economic theory</topic><topic>Finance</topic><topic>Financial investments</topic><topic>Financing</topic><topic>Information asymmetry</topic><topic>Investment policy</topic><topic>Investment spending</topic><topic>Investments</topic><topic>Regression analysis</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Fazzari, Steven M.</creatorcontrib><creatorcontrib>Athey, Michael J.</creatorcontrib><collection>CrossRef</collection><collection>Periodicals Index Online Segment 01</collection><collection>Periodicals Index Online Segment 04</collection><collection>Periodicals Index Online Segment 29</collection><collection>Periodicals Index Online</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - West</collection><collection>Primary Sources Access (Plan D) - International</collection><collection>Primary Sources Access & Build (Plan A) - MEA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Midwest</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Northeast</collection><collection>Primary Sources Access (Plan D) - Southeast</collection><collection>Primary Sources Access (Plan D) - North Central</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Southeast</collection><collection>Primary Sources Access (Plan D) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - UK / I</collection><collection>Primary Sources Access (Plan D) - Canada</collection><collection>Primary Sources Access (Plan D) - EMEALA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - North Central</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - International</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - International</collection><collection>Primary Sources Access (Plan D) - West</collection><collection>Periodicals Index Online Segments 1-50</collection><collection>Primary Sources Access (Plan D) - APAC</collection><collection>Primary Sources Access (Plan D) - Midwest</collection><collection>Primary Sources Access (Plan D) - MEA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Canada</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - UK / I</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - EMEALA</collection><collection>Primary Sources Access & Build (Plan A) - APAC</collection><collection>Primary Sources Access & Build (Plan A) - Canada</collection><collection>Primary Sources Access & Build (Plan A) - West</collection><collection>Primary Sources Access & Build (Plan A) - EMEALA</collection><collection>Primary Sources Access (Plan D) - Northeast</collection><collection>Primary Sources Access & Build (Plan A) - Midwest</collection><collection>Primary Sources Access & Build (Plan A) - North Central</collection><collection>Primary Sources Access & Build (Plan A) - Northeast</collection><collection>Primary Sources Access & Build (Plan A) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - Southeast</collection><collection>Primary Sources Access (Plan D) - UK / I</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - APAC</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - MEA</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>The review of economics and statistics</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Fazzari, Steven M.</au><au>Athey, Michael J.</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Asymmetric Information, Financing Constraints, and Investment</atitle><jtitle>The review of economics and statistics</jtitle><date>1987-08-01</date><risdate>1987</risdate><volume>69</volume><issue>3</issue><spage>481</spage><epage>487</epage><pages>481-487</pages><issn>0034-6535</issn><eissn>1530-9142</eissn><coden>RECSA9</coden><abstract>The results of a number of theoretical papers lead to the hypothesis that financial variables affect capital spending because of asymmetric information in capital markets. We review the relevant theory and test this hypothesis with a large sample of firm data. The results show that financial variables such as cash flow and interest expense add significant explanatory power to investment equations based on Jorgenson's neoclassical model, with a CAPM specification for the firm's cost of capital, and a sales-accelerator model. The analysis, therefore, links recent theoretical work on capital markets to long-standing empirical debates in the investment literature.</abstract><cop>Cambridge, Mass</cop><pub>Elvesier Science Publishers B.V. (North-Holland)</pub><doi>10.2307/1925536</doi><tpages>7</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0034-6535 |
| ispartof | The review of economics and statistics, 1987-08, Vol.69 (3), p.481-487 |
| issn | 0034-6535 1530-9142 |
| language | eng |
| recordid | cdi_proquest_journals_194677250 |
| source | Jstor Complete Legacy; Business Source Complete; Periodicals Index Online; JSTOR Mathematics & Statistics |
| subjects | Capital assets Capital costs Capital investments Capital markets Cash flow Coefficients Economic models Economic theory Finance Financial investments Financing Information asymmetry Investment policy Investment spending Investments Regression analysis |
| title | Asymmetric Information, Financing Constraints, and Investment |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-02-13T21%3A10%3A33IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-jstor_proqu&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Asymmetric%20Information,%20Financing%20Constraints,%20and%20Investment&rft.jtitle=The%20review%20of%20economics%20and%20statistics&rft.au=Fazzari,%20Steven%20M.&rft.date=1987-08-01&rft.volume=69&rft.issue=3&rft.spage=481&rft.epage=487&rft.pages=481-487&rft.issn=0034-6535&rft.eissn=1530-9142&rft.coden=RECSA9&rft_id=info:doi/10.2307/1925536&rft_dat=%3Cjstor_proqu%3E1925536%3C/jstor_proqu%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=1290942405&rft_id=info:pmid/&rft_jstor_id=1925536&rfr_iscdi=true |