Capital Supply Uncertainty, Cash Holdings, and Investment

• 成果类型: Article
• 署名作者: Hugonnier, Julien; Malamud, Semyon; Morellec, Erwan
• 署名单位: Swiss Federal Institutes of Technology Domain; Ecole Polytechnique Federale de Lausanne; Swiss Finance Institute (SFI)
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhu081
• 发表日期: 2015
• 页码: 391
• 关键词: transactions demand; Real options; corporate; liquidity; MODEL; RISK; decisions; money; cost; ipos

摘要

We develop a dynamic model of investment, financing, and cash management decisions in which investment is lumpy and firms face capital supply uncertainty. We characterize optimal policies explicitly, demonstrate that smooth-pasting conditions may not guarantee optimality, and show that firms may not follow standard single barrier policies. In the model, firms with high investment costs differ in their behaviors from firms with low investment costs, financing policy does not follow a strict pecking order, and the optimal payout policy may feature several regions with both incremental and lumpy dividend payments.