IAE-DF Ponencias en congresos
https://riu.austral.edu.ar/handle/123456789/164
2024-03-29T04:40:51ZAsymmetry and the cost of capital.
https://riu.austral.edu.ar/handle/123456789/211
Asymmetry and the cost of capital.
Sarria Allende, Virginia; García Sánchez, Javier; Preve, Lorenzo
The expected cost of capital is a crucial component for most of the topics in corporate finance. Unfortunately in the presence of risky debt, it is systematically overestimated. This bias is increasing in leverage and the volatility of cash flows. We show the existence of the bias and assess its size. We finally propose a novel methodology to obtain a direct unbiased estimation of the expected return on assets. This method avoids the computational error that is obtained from the estimation of the individual components.
2011-01-01T00:00:00ZWorking Capital Management: An Exploratory Study
https://riu.austral.edu.ar/handle/123456789/208
Working Capital Management: An Exploratory Study
Preve, Lorenzo
Working capital management is an issue in which finance research is scarce. One possible reason behind this fact might relate to the relative ease with which efficient financial markets correct deviations from optimal working capital policies. However, in less efficient financial markets, pervasive among emerging economies, working capital management is critical for both firms' performance and survival. The difference in the market's ability for providing immediate assistance to firms might explain the differential consequences on firms' profitability and financial distress. This article explains the fundamentals of working capital management, the importance of its interaction with financial markets, and how this interaction might explain working capital patterns around the world.
2012-01-01T00:00:00ZAn empirical analysis of the effect of financial distress on trade credit
https://riu.austral.edu.ar/handle/123456789/207
An empirical analysis of the effect of financial distress on trade credit
Preve, Lorenzo
This paper studies the use of supplier's trade credit by firms in financial distress. Trade credit represents a large portion of firms’ short-term financing and plays an important role in financial distress. We find that firms in financial distress use a significantly larger amount of trade credit to substitute for alternative sources of financing. Firms that are smaller, with less market power, and with more unique products tend to use more trade credit financing when in distress. We also find that firms that significantly increase their trade payables when in financial distress, experience an additional drop of at least 11% in sales and profitability growth over the previously documented 21% average drop for financially troubled firms.
2003-01-01T00:00:00Z