Investment Decisions of Nonprofit Firms: Evidence from Hospitals

• 成果类型: Article
• 署名作者: Adelino, Manuel; Lewellen, Katharina; Sundaram, Anant
• 署名单位: Duke University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12234
• 发表日期: 2015
• 页码: 1583-1628
• 关键词: cash flow sensitivities; health-care; asymmetric information; patient preferences; Corporate jets; cost; OWNERSHIP; intensity; liquidity; returns

摘要

This paper examines investment choices of nonprofit hospitals. It tests how shocks to cash flows caused by the performance of the hospitals' financial assets affect hospital expenditures. Capital expenditures increase, on average, by 10 to 28 cents for every dollar received from financial assets. The sensitivity is similar to that found earlier for shareholder-owned corporations. Executive compensation, other salaries, and perks do not respond significantly to cash flow shocks. Hospitals with an apparent tendency to overspend on medical procedures do not exhibit higher investment-cash flow sensitivities. The sensitivities are higher for hospitals that appear financially constrained.