Asset Specificity of Nonfinancial Firms*

• 成果类型: Article
• 署名作者: Kermani, Amir; Ma, Yueran
• 署名单位: University of California System; University of California Berkeley; University of Chicago
• 刊物名称: QUARTERLY JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0033-5533
• DOI: 10.1093/qje/qjac030
• 发表日期: 2022
• 页码: 205-264
• 关键词: Vertical Integration; liquidation values; capital structure; INVESTMENT; irreversibility; uncertainty; prices; COSTS; reallocation; ORGANIZATION

摘要

We develop a new data set to study asset specificity among nonfinancial firms. Our data cover the liquidation values of each category of assets on firms' balance sheets and provides information across major industries. First, we find that nonfinancial firms have high asset specificity. For example, the liquidation value of fixed assets is 35% of the net book value in the average industry. Second, we analyze the determinants of asset specificity and document that assets' physical attributes (e.g., mobility, durability, and customization) play a crucial role. Third, we investigate several implications. Consistent with theories of investment irreversibility, high asset specificity is associated with less disinvestment and stronger effects of uncertainty on investment activities. We also find that the increasing prevalence of intangible assets has not significantly reduced firms' liquidation values.