Cash Flow and Investment: Evidence from Internal Capital Markets /
Lamont, Owen.
Cash Flow and Investment: Evidence from Internal Capital Markets / Owen Lamont. - Cambridge, Mass. National Bureau of Economic Research 1996. - 1 online resource: illustrations (black and white); - NBER working paper series no. w5499 . - Working Paper Series (National Bureau of Economic Research) no. w5499. .
March 1996.
Using data from the 1986 oil price decrease, I examine the capital expenditures of non-oil subsidiaries of oil companies. I test the joint hypothesis that 1) a decrease in cash/collateral decreases investment, holding fixed the profitability of investment, and 2) the finance costs of different parts of the same corporation are interdependent. The results support this joint hypothesis: oil companies significantly reduced their non-oil investment compared to the median industry investment. The 1986 decline in investment was concentrated in non-oil units that were subsidized by the rest of the company in 1985.
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Mode of access: World Wide Web.
Cash Flow and Investment: Evidence from Internal Capital Markets / Owen Lamont. - Cambridge, Mass. National Bureau of Economic Research 1996. - 1 online resource: illustrations (black and white); - NBER working paper series no. w5499 . - Working Paper Series (National Bureau of Economic Research) no. w5499. .
March 1996.
Using data from the 1986 oil price decrease, I examine the capital expenditures of non-oil subsidiaries of oil companies. I test the joint hypothesis that 1) a decrease in cash/collateral decreases investment, holding fixed the profitability of investment, and 2) the finance costs of different parts of the same corporation are interdependent. The results support this joint hypothesis: oil companies significantly reduced their non-oil investment compared to the median industry investment. The 1986 decline in investment was concentrated in non-oil units that were subsidized by the rest of the company in 1985.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.