| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w27588 |
| 来源ID | Working Paper 27588 |
| The Role of Assets In Place: Loss of Market Exclusivity and Investment | |
| Matthew J. Higgins; Mathias J. Kronlund; Ji Min Park; Joshua Pollet | |
| 发表日期 | 2020-07-27 |
| 出版年 | 2020 |
| 语种 | 英语 |
| 摘要 | We utilize a novel identification strategy to analyze the impact of assets in place on firms' decisions for future projects. We exploit the context in the pharmaceutical industry, where the loss of market exclusivity for a branded drug can be used to separate the impact of cash flows generated by a firm's current assets in place from the characteristics of its future investment opportunities. We first show that around the exclusivity losses in our sample of large drugs, the affected firms' profitability drop significantly. The timing of this profitability decrease was predetermined many years ago, and therefore, arguably independent of current investment opportunities. Nevertheless, we find that R&D spending drops by approximately 25% over two years following the loss of exclusivity. We also find that stock repurchases and cash balances decline significantly. Our findings do not support the predictions of traditional capital budgeting, but are more consistent with the pecking order theory. These results further point to a lack of long-term lifecycle management that could mitigate the effect of predictable negative shocks to cash flows. |
| 主题 | Microeconomics ; Behavioral Economics ; Financial Economics ; Corporate Finance ; Industrial Organization ; Industry Studies ; Development and Growth ; Innovation and R& ; D |
| URL | https://www.nber.org/papers/w27588 |
| 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/585259 |
| 推荐引用方式 GB/T 7714 | Matthew J. Higgins,Mathias J. Kronlund,Ji Min Park,et al. The Role of Assets In Place: Loss of Market Exclusivity and Investment. 2020. |
| 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 | ||
| w27588.pdf（427KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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