Asymmetric Investment Rates

Hang Bai, Erica X. N. Li, Chen Xue and Lu Zhang
Additional contact information
Hang Bai: University of Connecticut
Erica X. N. Li: Cheung Kong Graduate School of Business
Chen Xue: University of Cincinnati
Lu Zhang: Ohio State University - Fisher College of Business; National Bureau of Economic Research

Working Paper Series from Ohio State University, Charles A. Dice Center for Research in Financial Economics

Abstract: Integrating national accounting with financial accounting, we provide firm-specific estimates of current-cost capital stocks for the entire Compustat universe, as well as an array of estimates of investment flows, economic depreciation rates, and capital and investment price deflators. The firm-level current-cost investment rate distribution is heavily right-skewed, with a small fraction of negative investment rates, 5.51%, but a huge fraction of positive investment rates, 91.64%. Despite a tiny fraction of inactive investment rates, 2.85%, firm-level investment also seems lumpy, featuring a fraction of 32.66% for positive spikes (investment rates higher than 20%). For a typical firm, 39% of total investment is completed within 20% of the sample years.

JEL-codes: D22 D25 E22 E44 G12 G31 (search for similar items in EconPapers)
Date: 2022-04
New Economics Papers: this item is included in nep-acc, nep-cfn and nep-mac
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:ecl:ohidic:2022-03

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