WebNov 5, 2024 · Financial Lumpiness and Investment Santiago Bazdresch * Yale University November 2005 Abstract This paper shows that non-convex costs of financial adjustment are important for rationalizing observed investment and financing choices of firms. Using the COMPUSTAT database it first shows firm’s financing activity, like investment, … WebDec 1, 2024 · The paper examines the effect of investment frictions on leverage dynamics, using a model of a firm whose investment projects are (1) indivisible and lumpy, and …
Lumpiness financial definition of lumpiness - TheFreeDictionary.com
WebDec 1, 2007 · This paper shows that non-convex costs of financial adjustment are quantitatively relevant for explaining firm dynamics. First, empirically, financial activity is lumpy, more than investment activity. Second, non-convex costs are necessary, in the context of a dynamic investment and financing model, to rationalize this lumpiness. Web1 day ago · Moreover, Lantronix may experience lumpiness in its financial results due to the nature of its IT Management products, which are typically sold in larger transactions that are recognized over a... starling chevrolet mount pleasant
Financial Lumpiness and Investment - Semantic Scholar
WebCorpus ID: 235740118; Financial Lumpiness and Investment @inproceedings{Bazdresch2005FinancialLA, title={Financial Lumpiness and Investment}, author={Santiago Bazdresch}, year={2005} } WebDownloadable (with restrictions)! This paper examines investment lumpiness under incentive restrictions. When financial frictions enter the picture into the neoclassical framework, investment is no longer smooth due to the lump-sum costs that the firm incurs when raising costly external finance. Whited (2006) shows that the firm finds it optimal to … WebUsing a real options framework, I explain how the investment and payout decisions interact over time when irreversibility and financial constraints may bind jointly. Firms’ behaviour follows a life-cycle pattern: young (small) firms invest for growth; not unless they avoid liquidation and expand through investment do they pay dividends. ... starling chevrolet buick gmc saint cloud fl