Dynamic Strategic Corporate Finance: A Tug of War with Financial Frictions /
Doraszelski, Ulrich.
Dynamic Strategic Corporate Finance: A Tug of War with Financial Frictions / Ulrich Doraszelski, João F. Gomes, Felix Nockher. - Cambridge, Mass. National Bureau of Economic Research 2021. - 1 online resource: illustrations (black and white); - NBER working paper series no. w29310 . - Working Paper Series (National Bureau of Economic Research) no. w29310. .
September 2021.
Access to capital markets plays a key role for the evolution of an industry over time. We develop a benchmark theoretical setting that integrates core corporate finance insights about the impact of financial frictions on investment with those from industrial organization on dynamic competition and industry evolution under perfect capital markets. Using state of the art computational tools to systematically detect and evaluate multiple equilibria and to thoroughly explore the parameter space of our model, we show how, depending on key industry characteristics such as market size, financial frictions impact firms' pricing and investment strategies and the degree of industry concentration.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Dynamic Strategic Corporate Finance: A Tug of War with Financial Frictions / Ulrich Doraszelski, João F. Gomes, Felix Nockher. - Cambridge, Mass. National Bureau of Economic Research 2021. - 1 online resource: illustrations (black and white); - NBER working paper series no. w29310 . - Working Paper Series (National Bureau of Economic Research) no. w29310. .
September 2021.
Access to capital markets plays a key role for the evolution of an industry over time. We develop a benchmark theoretical setting that integrates core corporate finance insights about the impact of financial frictions on investment with those from industrial organization on dynamic competition and industry evolution under perfect capital markets. Using state of the art computational tools to systematically detect and evaluate multiple equilibria and to thoroughly explore the parameter space of our model, we show how, depending on key industry characteristics such as market size, financial frictions impact firms' pricing and investment strategies and the degree of industry concentration.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.