Effects of Nominal Contracting on Stock Returns (Classic Reprint)

Download or read book Effects of Nominal Contracting on Stock Returns (Classic Reprint) written by Richard S. Ruback and published by Forgotten Books. This book was released on 2016-09-28 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: Excerpt from Effects of Nominal Contracting on Stock Returns In section 3 we form 27 portfolios based on relative rankings of three nominal contracting variables: (i) Short-term Monetary Position, (cash Accounts Receivable Current Liabilities); (ii) Long-term Monetary Position, ( Long-term Debt Preferred Stock); and (iii) an estimate of the Depreciation Tax Shield. Firms with data available on the compustat data tape and the crsp Monthly Returns File are grouped into one of the 27 portfolios based on the values of these nominal con tracting variables. Using a variety of test procedures, we find no evidence that stockholders of firms with more nominal liabilities benefit from unexpected inflation. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.