Asymmetric Investment Rates / Hang Bai, Erica X. N. Li, Chen Xue, Lu Zhang.

Format:

Book

Author/Creator:

Bai, Hang.

Contributor:

National Bureau of Economic Research.

Li, Erica X. N.

Xue, Chen.

Zhang, Lu.

Series:

Working Paper Series (National Bureau of Economic Research) no. w29957.

NBER working paper series no. w29957

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2022.

Summary:

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.

Notes:

Print version record

April 2022.