Law and Economics Workshop: Kate Litvak

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Tuesday, December 2, 2014 @ 3:30pm2014-12-02 15:30:00 2014-12-02 15:30:00 Law and Economics Workshop: Kate Litvak The University of Chicago Law School and the Coase-Sandor Institute for Law and Economics welcome Kate Litvak, Professor of Law at Northwestern University School of Law.Professor Litvak will explore findings in her paper, Investment - Cash Flow Sensitivity Is Not Caused by Financial Constraint: New Evidence From a Randomized SEC Experiment. The sensitivity of firm’s investment to cash flows is one of the grand unresolved puzzles of corporate finance. This sensitivity could be caused by a firm’s financing constraints (and therefore reveal imperfections in capital markets), by agency problems, or by non-problematic factors. Prior papers have not been able to disentangle these causal relationships because the firm’s financing constraints, investment, and cash flows are endogenous. - University of Chicago Law School willcanderson@uchicago.edu America/Chicago public
Open to the public

The University of Chicago Law School and the Coase-Sandor Institute for Law and Economics welcome Kate Litvak, Professor of Law at Northwestern University School of Law.

Professor Litvak will explore findings in her paper, Investment - Cash Flow Sensitivity Is Not Caused by Financial Constraint: New Evidence From a Randomized SEC Experiment.

The sensitivity of firm’s investment to cash flows is one of the grand unresolved puzzles of corporate finance. This sensitivity could be caused by a firm’s financing constraints (and therefore reveal imperfections in capital markets), by agency problems, or by non-problematic factors. Prior papers have not been able to disentangle these causal relationships because the firm’s financing constraints, investment, and cash flows are endogenous.