Download or read book The Investment Decision written by Samuel and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Investment Decision written by Cherian Samuel and published by World Bank Publications. This book was released on 1996 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Investment Decision written by Cherian Samuel and published by . This book was released on 2016 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: For firms, the single most important determinant of capital spending appears to be cash flow. Firm managers care more about cash flow and cost of capital than about stock market signals and level of output. In the United States, gross business investments in plant and equipment (fixed investments) constitute only about 10 percent of GNP, but such investments may represent GNP's most important component because (1) plant and equipment have a long-term effect on the economy's productive capacity, (2) changes in investment spending directly affect levels of employment and workers' incomes in durable goods industries, and (3) supply and demand are sensitive to changes in investment, which is the most volatile component of GNP.Economists have long been concerned about what - in the economy, the industry, and the firm - determines investments in capital spending. Using a panel of data for U.S. manufacturing firms for 1972shy;90, Samuel compares five theories of investment: accelerator theory, cash flow theory (liquidity model, managerial model, and information-theoretic model), neoclassical theory, modified neoclassical (Bischoff) theory, and Q theory.If the results from cross-section regressions can be viewed as representing the long-term equilibrium, the single most important determinant of capital spending appears to be cash flow. Apparently, managers care more about cash flow and cost of capital than about stock market signals and the level of output. And at the firm level, managerial perceptions about fundamentals are more important than market perceptions. For managers, the stock market may be a side show to capital spending decisions.To generalize in a way that might be useful for developing countries: Financial decisions at the firm level are closely linked to real decisions in the economy. Internal finance is the most important source of funds, and capital spending is the most important use of funds, so there is a close relationship betwen real and financial decisions.This paper - a product of the Operations Policy Group, Operations Policy Department - is part of a larger effort in the department to disseminate results of policy analysis. The author may be contacted at [email protected].
Download or read book The Investment Decision A Re Examination of Competing Theories Using Panel Data written by Cherian Samuel and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: September 1996 For firms, the single most important determinant of capital spending appears to be cash flow. Firm managers care more about cash flow and cost of capital than about stock market signals and level of output. In the United States, gross business investments in plant and equipment (fixed investments) constitute only about 10 percent of GNP, but such investments may represent GNP's most important component because (1) plant and equipment have a long-term effect on the economy's productive capacity, (2) changes in investment spending directly affect levels of employment and workers' incomes in durable goods industries, and (3) supply and demand are sensitive to changes in investment, which is the most volatile component of GNP. Economists have long been concerned about what - in the economy, the industry, and the firm - determines investments in capital spending. Using a panel of data for U.S. manufacturing firms for 1972-90, Samuel compares five theories of investment: accelerator theory, cash flow theory (liquidity model, managerial model, and information-theoretic model), neoclassical theory, modified neoclassical (Bischoff) theory, and Q theory. If the results from cross-section regressions can be viewed as representing the long-term equilibrium, the single most important determinant of capital spending appears to be cash flow. Apparently, managers care more about cash flow and cost of capital than about stock market signals and the level of output. And at the firm level, managerial perceptions about fundamentals are more important than market perceptions. For managers, the stock market may be a side show to capital spending decisions. To generalize in a way that might be useful for developing countries: Financial decisions at the firm level are closely linked to real decisions in the economy. Internal finance is the most important source of funds, and capital spending is the most important use of funds, so there is a close relationship betwen real and financial decisions. This paper - a product of the Operations Policy Group, Operations Policy Department - is part of a larger effort in the department to disseminate results of policy analysis. The author may be contacted at [email protected].
Download or read book Nations Conglomerates and Empires written by Branko Milanovic and published by World Bank Publications. This book was released on 1996 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Determinants of Public Expenditure on Infrastructure written by Susan Randolph and published by World Bank Publications. This book was released on 1996 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book How Important are Labor Markets to the Welfare of Indonesia s Poor written by Andrew David Mason and published by World Bank Publications. This book was released on 1996 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:
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Download or read book Decentralized Structures for Providing Roads written by Frannie Humplick and published by World Bank Publications. This book was released on 1996 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Is There an Optimal Structure for Decentralized Provision of Roads written by Frannie Humplick and published by World Bank Publications. This book was released on 1996 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Pakistan Development Review written by and published by . This book was released on 2002 with total page 594 pages. Available in PDF, EPUB and Kindle. Book excerpt:
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Download or read book Bibliographie der Wirtschaftswissenschaften written by and published by . This book was released on 1998 with total page 946 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book International Capital Flows written by Punam Chuhan and published by World Bank Publications. This book was released on 1996 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
