| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w23434 |
| 来源ID | Working Paper 23434 |
| Price Risk, Production Flexibility, and Liquidity Management: Evidence from Electricity Generating Firms | |
| Chen Lin; Thomas Schmid; Michael S. Weisbach | |
| 发表日期 | 2017-05-22 |
| 出版年 | 2017 |
| 语种 | 英语 |
| 摘要 | Production inflexibility together with product price uncertainty creates price risk, which is a potentially important factor for firms’ liquidity management. One industry for which price risk can be measured is the electricity producing industry. We use data on hourly electricity prices in 41 markets to measure fluctuations in output prices and information on over 60,000 power plants to approximate firms’ flexibilty to vary output quantities. Our results suggest that higher electricity price volatility leads to increased cash holdings, but only in firms using inflexible production technologies. This effect is robust to a number of specification choices including instrumenting for volatility in electricity prices using weather forecast data. After deregulation, firms hold 20-25% more cash, suggesting that the process of deregulation increases the risk firms’ face. Price risk affects cash holdings most in financially constrained firms, and in firms that cannot easily hedge the electricity price through derivative markets. Capital market liquidity and balance sheet liquidity appear to be substitutes for one another. |
| 主题 | Financial Economics ; Corporate Finance ; Industrial Organization ; Regulatory Economics |
| URL | https://www.nber.org/papers/w23434 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/581107 |
| 推荐引用方式 GB/T 7714 | Chen Lin,Thomas Schmid,Michael S. Weisbach. Price Risk, Production Flexibility, and Liquidity Management: Evidence from Electricity Generating Firms. 2017. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w23434.pdf（792KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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