Did J.P. Morgan's Men Add Liquidity? Corporate Investment, Cash Flow, and Financial Structure at the Turn of the Century
JOURNAL OF FINANCE, Vol. 50 No. 2, June 1995
Posted: 10 Oct 1998
Abstract
This paper presents evidence suggesting that the relationship that existed between the partnership of J.P. Morgan and its client firms partially resolved the latter's external financing problems by diminishing the principal-agent and asymmetric information problems. I estimate and compare investment regression equations for a sample of Morgan-affiliated companies and a control group of non- affiliated companies. The econometric results seem to indicate that companies not affiliated to the House of Morgan were liquidity constrained.
JEL Classification: G31
Suggested Citation: Suggested Citation
Ramirez, Carlos D., Did J.P. Morgan's Men Add Liquidity? Corporate Investment, Cash Flow, and Financial Structure at the Turn of the Century. JOURNAL OF FINANCE, Vol. 50 No. 2, June 1995, Available at SSRN: https://ssrn.com/abstract=6347
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