Investment when new capital is hard to find

• 成果类型: Article
• 署名作者: Darmouni, Olivier; Sutherland, Andrew
• 署名单位: Columbia University; Massachusetts Institute of Technology (MIT)
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2024.103806
• 发表日期: 2024
• 关键词: investment; Capital Reallocation; secondary markets; SMEs; supply chain; Covid-19

摘要

We examine how a fixed capital supply shortage affects firm investment. Using equipment transaction-level data, we find pandemic-driven production disruptions significantly altered capital reallocation patterns across firms. A surge in used capital trading activity softened the investment decline, as firms acquired used capital from distant and dissimilar counterparts. Younger firms were disproportionately affected even though they rarely purchase new capital: while in normal times older firms sell their capital to younger firms, following a supply shortage, older firms compete for used capital, pricing out younger firms. Our evidence highlights the crucial role of secondary markets and distributive externalities for corporate investment.