- (E.37) E.5 Model Estimation E.5.1 Data The baseline DSGE model is estimated on six UK aggregate time series: real house prices (qdata l,t ), the inverse of the relative price of investment (qdata t ), real per capita investment (Idata t ), real per capita consumption (Cdata t ), lending to corporates (Bdata t ), working hours (Ndata t ). The sample covers the period from 1975:Q3 to 2015:Q1. The observable series are defined as follows: qdata l,t = Nationwide cdef qdata t = cdef idef Idata t = inv popindex Cdata t = (pcons − imprent − actrent) /cdef popindex Bdata t = Bcorp/cdef popindex Ndata t = TotalHours popindex Nationwide: Seasonally adjusted house price index of all houses, derived from Nationwide lending data for properties at the post survey approval stage. cdef : Quarterly private consumption deflator, seasonally adjusted (constructed using ONS codes: (ABJQ + HAYE)/ (ABJR + HAYO)).
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- A more material change in UK law on the 1st October 200957 meant that all directors had the option of having a service address displayed publicly rather than their usual residential address after this date. Usual residential addresses are still required alongside service addresses but the former are kept confidential at the director’s request. This is the source of the decline in the match rate seen in Figure 6 after the May 2009 vintage of BvD: directors started reporting service addresses, which are 56 The insertion of Sections 723B to E into the Companies Act 1985 became effective on this date. 57 Specifically, the implementation of Sections 162-167 (register of directors) of the 2006 Companies Act.
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• Second, even within the time period covered by the 10 lagged accounts, our merged dataset brings significant benefits in terms of coverage of the accounting information firms report. To demonstrate this, we downloaded 10 accounts for each firm from the August 2015 vintage and compared the value of firm’s “Total Assetsâ€Â, a particularly well-reported variable, to the same variable over the same set of 10 accounts using the data as created from the our combined dataset using all 21 vintages. The proportion of observations for which “Total assets†are Figure 4: Proportion of Observations with Total Assets Missing Notes: the figure displays the proportion of total assets missing among companies with a non-missing statement date.
- • Third, the combined dataset has significantly greater coverage of firms. Figure 5 displays the proportion of companies present in each accounting year in our combined dataset that are still present in the August 2015 vintage. Only 55% of the companies that filed accounts in 2000 are still present in the August 2015 vintage. Note, this is not the requirement that the firm accounts from 2000 are present in the 2015 vintage, only that information on the firm itself is still present. The difference in asset reporting in Figure 4 is driven largely by firms exiting the database before the 2015 vintage. Indeed, 94% of the firm observations where “Total Assets†is reported in the full panel but not from the 2015 vintage have had their “Company Status†become no longer Live at a date prior to 2015.
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- Adelino, Manuel, Antoinette Schoar, and Felipe Severino, “House Prices, Collateral and SelfEmployment, †Journal of Financial Economics, 2015, 117 (2), 288 – 306.
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Albanesi, Stefania, Giacomo DeGiorgi, and Jaromir Nosal, “Credit Growth And The Financial Crisis: A New Narrative,†Mimeo, 2016.
- All national accounts data are from the 2015:Q4 vintage unless otherwise stated.
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Avery, Robert B., Raphael W. Bostic, and Katherine A. Samolyk, “The role of personal wealth in small business finance,†Journal of Banking & Finance, August 1998, 22 (6-8), 1019–1061.
Bathala, Chenchuramaiah T., Oswald D. Bowlin, and William P. Dukes, “Use of Debt Covenants in Small Firms,†The Journal of Entrepreneurial Finance, 2006, 11 (2), 49–72.
- Benmelech, Efraim and Nittai K. Bergman, “Collateral pricing,†Journal of Financial Economics, March 2009, 91 (3), 339–360.
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Berger, Allen N and Gregory F Udell, “Relationship Lending and Lines of Credit in Small Firm Finance,†The Journal of Business, July 1995, 68 (3), 351–81.
- Berger, David, Veronica Guerrieri, Guido Lorenzoni, and Joseph Vavra, “House Prices and Consumer Spending,†Mimeo., 2017.
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- Berkowitz, Jeremy and Michelle J. White, “Bankruptcy and Small Firms’ Access to Credit,†The RAND Journal of Economics, 2004, 35 (1), 69–84.
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Best, Michael Carlos, James Cloyne, Ethan Ilzetzki, and Henrik Jacobsen Kleven, “Interest rates, debt and intertemporal allocation: evidence from notched mortgage contracts in the United Kingdom,†Bank of England working papers 543, Bank of England August 2015.
Bracke, Philippe, Christian Hilber, and Olmo Silva, “Mortgage Debt and Entrepreneurship,†Bank of England working papers 560, Bank of England October 2015.
Brick, Ivan E. and Darius Palia, “Evidence of jointness in the terms of relationship lending,†Journal of Financial Intermediation, July 2007, 16 (3), 452–476.
Briggs, Joseph S., David Cesarini, Erik Lindqvist, and Robert Östling, “Windfall Gains and Stock Market Participation,†NBER Working Papers 21673, National Bureau of Economic Research, Inc October 2015.
Brunnermeier, Markus K. and Stefan Nagel, “Do Wealth Fluctuations Generate Time-Varying Risk Aversion? Micro-evidence on Individuals,†American Economic Review, June 2008, 98 (3), 713–736.
Calcagnini, Giorgio, Fabio Farabullini, and Germana Giombini, “The Impact of Guarantees on Bank Loan Interest Rates,†Applied Financial Economics, March 2014, 24 (6), 397–412.
Campbell, John Y. and Joao F. Cocco, “How do house prices affect consumption? Evidence from micro data,†Journal of Monetary Economics, April 2007, 54 (3), 591–621.
Carroll, James, Fergal McCann, and Conor O’Toole, “The Use of Personal Guarantees in Irish SME Lending,†Economic Letters 06/EL/15, Central Bank of Ireland May 2015.
- Catherine, Sylvain, Thomas Chaney, Zongbo Huang, David Sraer, and David Thesmar, “Aggregate Effects of Collateral Constraints,†Mimeo, MIT 2017.
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- CEET, “Encuesta Sobre El Acceso De Las PYMES a La Financiacion Ajena,†Technical Report, Centro de Estudios Economicos Tomillo 2010.
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Chaney, Thomas, David Sraer, and David Thesmar, “The Collateral Channel: How Real Estate Shocks Affect Corporate Investment,†American Economic Review, 2012, 102 (6), 2381–2409.
Chetty, Raj, Laszlo Sandor, and Adam Szeidl, “The Effect of Housing on Portfolio Choice,†The Journal of Finance, 2017, 72 (3), 1171–1212.
Coco, Giuseppe, “On the Use of Collateral,†Journal of Economic Surveys, 2000, 14 (2), 191–214.
- Column (2) calculates Corporate RE by iterating forward the 2002 book value of “Land and Buildings†using a commercial real estate price index instead of the house price index. Columns (3), (4) include interactions of both Residential and Corporate RE with a dummy variable taking the value one when all of a firm’s trading addresses are in a single region.
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- Column (5) calculates Corporate RE using the market, rather than book, value of “Land and Buildings†in 2002. This is calculated using a LIFO recursion, with the market value of land in the base year taken from the value of “Land and Buildings†when the firm was first incorporated. Column (6) calculates Corporate RE using the one-year lagged book value of “Land and Buildingsâ€Â, iterated forward using the regional house price index. Column (7) uses the same definition of Corporate RE, but with investment, excluding investment in “Land and Buildingsâ€Â, as the dependent variable.
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- commercial and not in the Land Registry, rather than their residential addresses. However, the law was not applied retrospectively: all residential addresses held on public record at Companies House prior to 1st October 2009 continue to be held after this date. Thus, there would not be a material increase in privacy for directors through replacing their residential address with a service address unless the director moved house. In the data there is no spike in new addresses entering the database in 2009/2010: around 1.3 million new addresses entered the database in 2008 compared to 800,000 in 2009 (for the three year period 2006-2008 2.8 million new addresses where registered compared to 2.7 million three years 2009-2011).
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Connolly, Ellis, Gianni La Cava, and Matthew Read, “Housing Prices and Entrepreneurship: Evidence for the Housing Collateral Channel in Australia,†in Angus Moore and John Simon, eds., Small Business Conditions and Finance, RBA Annual Conference Volume, Reserve Bank of Australia, June 2015.
- Controls comprises of quintiles for firm and director characteristics in 2002 interacted with the house price index in the firm region; the firm’s regional house price index; and the inverse of lagged “Turnover†(see Section 4). All ratios are winsorized at the median 5 times the interquartile range. Standard errors, clustered by firm region, in parentheses. All regressions include firm, region-time and (2 digit) industry-time fixed effects. Column (1) presents the baseline results.
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Corradin, Stefano and Alexander Popov, “House Prices, Home Equity Borrowing, and Entrepreneurship, †The Review of Financial Studies, 2015, 28 (8), 2399.
- Cvijanovic, Dragana, “Real Estate Prices and Firm Capital Structure,†Review of Financial Studies, 2014, 27 (9), 2690–2735.
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Davydenko, Sergei A. and Julian R. Franks, “Do Bankruptcy Codes Matter? A Study of Defaults in France, Germany, and the U.K.,†The Journal of Finance, 2008, 63 (2), 565–608.
DeFusco, Anthony A., “Homeowner Borrowing and Housing Collateral: New Evidence from Expiring Price Controls,†Journal of Finance, 2017, Forthcoming.
- Dir. Controls comprises of quintiles for firm and director characteristics in 2002 interacted with the house price index in the firm region; the firm’s regional house price index; and the inverse of lagged “Turnover†(see Section 4). All ratios are winsorized at the median 5 times the interquartile range. Standard errors, clustered by firm region, in parentheses. Column (1) is the baseline regression including all controls and fixed effects. In Column (2) Residential RE is replaced with Residential RE samehouse. In Column (3) Residential RE is replaced with Residential RE sameregion. In Column (4) Residential RE is replaced with Residential RE samedirector. In Column (5) Residential RE is replaced with Residential RE sameregion&director.
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- Dir. Controls comprises of quintiles for firm and director characteristics in 2002 interacted with the house price index in the firm region; the firm’s regional house price index; and the inverse of lagged “Turnover†(see Section 4). All ratios are winsorized at the median 5 times the interquartile range. Standard errors, clustered by firm region, in parentheses. Column (1): the effect of residential real estate excluding all further controls with the exception of firm fixed effects. Column (2): both real estate channels, region-time, industry-time and firm fixed effects. Column (3) includes the firm controls and only firm fixed effects. Column (4) is the baseline regression including all controls and fixed effects. Column (5) presents the baseline regression omitting Corporate RE. Column (6) presents the baseline regression omitting Residential RE.
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Favilukis, Jack, Sydney C. Ludvigson, and Stijn Van Nieuwerburgh, “The Macroeconomic Effects of Housing Wealth, Housing Finance, and Limited Risk Sharing in General Equilibrium,†Journal of Political Economy, 2017, 125 (1), 140–223.
Fazzari, Steven, R. Glenn Hubbard, and Bruce Petersen, “Financing Constraints and Corporate Investment,†Brookings Papers on Economic Activity, 1988, 19 (1), 141–206.
- Field-Fisher-Waterhouse, “Enforcing Against a Personal Guarantor,†Briefing Report, 2012, October.
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- Figure 3: The Importance Of Residential Real Estate Over The UK Business Cycle 1980 1985 1990 1995 2000 2005 2010 2015 10.5 10.6 10.7 10.8 10.9 11 11.1 in logs UK Real Investment per Capita Counterfactual (É2 =0) Data Note: The counterfactual path of the investment is computed in three steps. First, we estimate the model and save the time series of the structural shocks. Second, we change É2 = 0.33 to É2 = 0 and recompute the model’s policy functions. Third, we apply the Kalman filter to the newly computed policy functions and the estimated time series of the structural shocks from the first step, which yields the counterfactual investment time series (in blue).
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- Figure 5: Fraction of Firms Present in August 2015 vintage Notes: the figure displays the proportion of firms in each statement year, as derived from the full set of 21 vintages, that are present in the August 2015 vintage. A.5 Sample Selection Our key sample selection criteria are articulated in the main text; for completeness here we describe the conditions under which companies and observations can enter our sample. • We restrict our sample to only include limited liability, for profit companies to which the Companies Act applies. Specifically, we include “Private Limitedâ€Â, “Public AIMâ€Â, “Public Quotedâ€Â, “Public Not Quotedâ€Â. This information is contained in the “Legal Form†field in the FAME database. • For a firm-year observation to be included, the firm must have had a “Company Status†of Live when the accounts were first filed.
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- For the final vintage, August 2015, we downloaded the full 10 years of data in order to evaluate the benefits of using the archived vintages versus a single snapshot of the database.
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- For the purpose of our analysis, this legal change has little impact since we fix both the composition of directors and their houses in 2002. Only directors who move or are appointed (for the first time) after 2009 are affected by this change in the law but this variation is not included in our analysis.
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Franks, Julian and Oren Sussman, “Financial Distress and Bank Restructuring of Small to Medium Size UK Companies,†Review of Finance, 2005, 9 (1), 65–96.
- From April 2nd 2002,56 directors had the option to waive this requirement if the director was successful in obtaining a confidentiality order, having demonstrated to the Secretary of State that placing their residential address on the public record would place them or someone living with them at risk of violence or intimidation, for example from political groups. In this case the director could remove their residential address from public record and replace it with a service address at which they could be reached, for example their firm address, with the residential address held securely and only accessible by Competent Authorities. The bar for obtaining such an order is high. We discussed this issue with Companies House and they estimated that less than 1% of directors are beneficiaries of a confidentiality order at any given date.
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Gan, Jie, “Collateral, debt capacity, and corporate investment: Evidence from a natural experiment,†Journal of Financial Economics, September 2007, 85 (3), 709–734. Gopinath, Gita, Sebnem Kalemli-Ozcan, Loukas Karabarbounis, and Carolina VillegasSanchez, “Capital Allocation and Productivity in South Europe,†Quarterly Journal of Economics, forthcoming.
Greenwood, Jeremy, Zvi Hercowitz, and Per Krusell, “Long-Run Implications of Investment-Specific Technological Change,†American Economic Review, June 1997, 87 (3), 342–62.
Guerrieri, Veronica and Guido Lorenzoni, “Credit Crises, Precautionary Savings, and the Liquidity Trap,†The Quarterly Journal of Economics, 2017, 132 (3), 1427–1467.
- Harmonisation of Accounting Data. As accounting data can be revised, our general principle is to use the latest available non-missing data. A stylised set of accounts are presented in Table 19. When there are no accounts missing for a firm and accounting data has not been revised, the diagonal entries in the table will be the same. Thus, for example, the current value of variable x in the 2006 accounts will be the same as the first lag of x in the 2007 accounts, which will in turn be the same as the second lag of x in the 2008 accounts: xC,2006 = xL1,2007 = xL2,2008. Where accounting revisions occur these values will differ.
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Hayashi, Fumio and Tohru Inoue, “The Relation between Firm Growth and Q with Multiple Capital Goods: Theory and Evidence from Panel Data on Japanese Firms,†Econometrica, May 1991, 59 (3), 731–53.
Hilber, Christian A. L. and Wouter Vermeulen, “The Impact of Supply Constraints on House Prices in England,†The Economic Journal, 2016, 126 (591), 358–405.
Hoshi, Takeo and Anil K. Kashyap, “Evidence on q and investment for Japanese firms,†Journal of the Japanese and International Economies, 1990, 4 (4), 371 – 400.
Hubbard, R. Glenn, “Capital-Market Imperfections and Investment,†Journal of Economic Literature, 1998, 36 (1), 193–225.
Hurst, Erik and Annamaria Lusardi, “Liquidity Constraints, Household Wealth, and Entrepreneurship, †Journal of Political Economy, April 2004, 112 (2), 319–347.
Iacoviello, Matteo, “House Prices, Borrowing Constraints, and Monetary Policy in the Business Cycle,†American Economic Review, June 2005, 95 (3), 739–764.
- IPF, “The Size and Structure of the UK Property Market: End 2015 Update,†Technical Report, 2016.
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Jensen, Thais, Søren Leth-Petersen, and Ramana Nanda, “Housing Collateral, Credit Constraints and Entrepreneurship - Evidence from a Mortgage Reform,†NBER Working Papers 20583, National Bureau of Economic Research, Inc October 2014.
Jimenez, Gabriel and Jesus Saurina, “Collateral, type of lender and relationship banking as determinants of credit risk,†Journal of Banking and Finance, 2004, 28 (9), 2191 – 2212.
Justiniano, Alejandro, Giorgio Primiceri, and Andrea Tambalotti, “Household leveraging and deleveraging,†Review of Economic Dynamics, 2015, 10, 3–20.
Kalemli-Ozcan, Sebnem, Bent Sorensen, Carolina Villegas-Sanchez, Vadym Volosovych, and Sevcan Yesiltas, “How to Construct Nationally Representative Firm Level data from the ORBIS Global Database,†NBER Working Papers 21558, National Bureau of Economic Research, Inc September 2015.
Kaplan, Greg, Kurt Mitman, and Gianluca L. Violante, “The Housing Boom and Bust: Model Meets Evidence,†Working Paper 23694, National Bureau of Economic Research 2017.
Kaplan, Steven N. and Luigi Zingales, “Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?,†The Quarterly Journal of Economics, 1997, 112 (1), 169–215.
Kerr, Sari, William R. Kerr, and Ramana Nanda, “House Money and Entrepreneurship,†Working Paper 21458, National Bureau of Economic Research August 2015.
- Kleiner, Kristoph, “How Real Estate Drives the Economy: An Investigation of Small Firm Collateral Shocks on Employment,†Job Market Paper, Indiana University 2013.
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Liu, Zheng, Jianjun Miao, and Tao Zha, “Land prices and unemployment,†Journal of Monetary Economics, 2016, 80, 86 – 105.
Meisenzahl, Ralf R., “Verifying the State of Financing Constraints: Evidence from U.S. business credit contracts,†Journal of Economic Dynamics and Control, 2014, 43, 58 – 77.
Mian, Atif and Amir Sufi, “House Prices, Home Equity-Based Borrowing, and the US Household Leverage Crisis,†American Economic Review, August 2011, 101 (5), 2132–56.
- missing from each dataset is shown in Figure 4. Using the combined dataset, “Total Assets†is consistently well-reported, as shown in red, with data missing for only around 3% of firm observations throughout the sample. Data downloaded only from the 2015 vintage has similar coverage of “Total Assets†for the first five accounts, before dropping off substantially, with around a third of observations missing this data by the final lagged accounts.
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- Notes: The table reports the link between residential real estate, corporate real estate, and firm investment. The sample covers reporting UK firms over the period 2002-2014. The dependent variable, Investment, is defined as the change in “Fixed Assets†less “Depreciationâ€Â.
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- Notes: The table reports the link between residential real estate, corporate real estate, and firm investment. The sample covers reporting UK firms over the period 2002-2014. The dependent variable, Investment, is defined as the change in “Fixed Assets†less “Depreciationâ€Â.
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- Notes: The table reports the results for the estimation of Equation 4.2 over the sample period Jan-1995 to Mar-2016 for 150 English regions.
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- Notes: This Table reports the link between residential real estate, corporate real estate, and firm investment. The sample covers reporting UK firms over the period 2002-2014. The dependent variable, Investment, is defined as the change in “Fixed Assets†less “Depreciationâ€Â.
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- Notes: This Table reports the link between residential real estate, corporate real estate, and firm investment. The sample covers reporting UK firms over the period 2002-2014. The dependent variable, Investment, is defined as the change in “Fixed Assets†less “Depreciationâ€Â.
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- OECD, Small, Medium, Strong. Trends in SME Performance and Business Conditions., OECD Publishing, 2017.
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- of the latter, one relevant omitted set of transactions are the purchase of houses using a Buy-to-Let mortgage. One may be concerned that these are directors that live in rental properties. However, for reasons we describe in the main text this is unlikely. Another culprit is likely business addresses that cannot obviously be classified as commercial by inspecting their names. We discuss the law regarding directors using a commercial address below. It does seem, however, that many of the unmatched addresses are those where the owner has not sold their property since 1995 (2003 in the case of Scotland).
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- One vintage refers to the 10 lagged accounts downloaded for the companies present in the August 2015 vintage. Full dataset refers to the final panel of firms produced from the 21 vintages from 2005 to 2015, as described above, covering the same period.
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Ono, Arito and Iichiro Uesugi, “Role of Collateral and Personal Guarantees in Relationship Lending: Evidence from Japan’s SME Loan Market,†Journal of Money, Credit and Banking, 2009, 41 (5), 935–960.
- Peltoniemi, Janne and Markku Vieru, “Personal Guarantees, Loan Pricing, and Lending Structure in Finnish Small Business Loans,†Journal of Small Business Management, 2013, 51 (2), 235–255.
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Pinter, Gabor, “House Prices and Job Losses,†Discussion Papers 1507, Centre for Macroeconomics (CFM) March 2015.
Pugsley, Benjamin and Erik Hurst, “What Do Small Businesses Do?,†Brookings Papers on Economic Activity, 2011, pp. 73–142.
- Residential RE is the total value of residential property held by directors of the firm, holding the composition of directors and their properties fixed in 2002, updating the value through time with changes in their respective regional house price indices, as defined in Equation 3.2. Corporate RE is the 2002 book value of firm "Land and Buildings" iterated forward using the regional house price index, as defined in Equation 3.1. Cash and Profits enter with a lag. All of these variables are scaled by the lag of firm "Turnover". Add. Firm. Dir.
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- Residential RE is the total value of residential property held by directors of the firm, holding the composition of directors and their properties fixed in 2002, updating the value through time with changes in their respective regional house price indices, as defined in Equation 3.2. Corporate RE is the 2002 book value of firm "Land and Buildings" iterated forward using the regional house price index, as defined in Equation 3.1. Cash and Profits enter with a lag. All of these variables are scaled by the lag of firm “Turnoverâ€Â. Add. Firm. Dir.
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- Residential RE is the total value of residential property held by directors of the firm, holding the composition of directors and their properties fixed in 2002, updating the value through time with changes in their respective regional house price indices, as defined in Equation 3.2. Corporate RE is the 2002 book value of firm "Land and Buildings" iterated forward using the regional house price index, as defined in Equation 3.1. Cash and Profits enter with a lag. All of these variables are scaled by the lag of firm "Turnover". Add. Firm. Dir.
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- Residential RE is the total value of residential property held by directors of the firm, holding the composition of directors and their properties fixed in 2002, updating the value through time with changes in their respective regional house price indices, as defined in Equation 3.2. Corporate RE is the 2002 book value of firm “Land and Buildings†iterated forward using the regional house price index, as defined in Equation 3.1. Cash and Profits enter with a lag. All of these variables are scaled by the lag of firm "Turnover". Add. Firm.
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- Residential RE is the total value of residential property held by directors of the firm, holding the composition of directors and their properties fixed in 2002, updating the value through time with changes in their respective regional house price indices, as defined in Equation 3.2. Corporate RE is the 2002 book value of firm “Land and Buildings†iterated forward using the regional house price index, as defined in Equation 3.1. Cash and Profits enter with a lag. All of these variables are scaled by the lag of firm “Turnoverâ€Â. Add. Firm. Dir.
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- Residential RE is the total value of residential property held by directors of the firm, holding the composition of directors and their properties fixed in 2002, updating the value through time with changes in their respective regional house price indices, as defined in Equation 3.2. Corporate RE is the 2002 book value of firm “Land and Buildings†iterated forward using the regional house price index, as defined in Equation 3.1. Cash and Profits enter with a lag. All of these variables are scaled by the lag of firm “Turnoverâ€Â. Add. Firm. Dir.
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- Residential RE is the total value of residential property held by directors of the firm, holding the composition of directors and their properties fixed in 2002, updating the value through time with changes in their respective regional house price indices, as defined in Equation 3.2. Corporate RE is the 2002 book value of firm “Land and Buildings†iterated forward using the regional house price index, as defined in Equation 3.1. Cash and Profits enter with a lag. All of these variables are scaled by the lag of firm “Turnoverâ€Â. Add. Firm.
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- Residential RE is the total value of residential property held by directors of the firm, holding the composition of directors and their properties fixed in 2002, updating the value through time with changes in their respective regional house price indices, as defined in Equation 3.2. Corporate RE is the 2002 book value of firm Land and Buildings iterated forward using the regional house price index, as defined in Equation 3.1. Cash and Profits enter with a lag. All of these variables are scaled by the lag of firm turnover. Add. Firm.
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- Residential Real Estate is the total value of residential property held by directors of the firm, holding the composition of directors and their properties fixed in 2002, updating the value through time with changes in their respective regional house price indices, as defined in Equation 3.2. Corporate RE is the 2002 book value of firm “Land and Buildings†iterated forward using the regional house price index, as defined in Equation 3.1. Cash and Profits enter with a lag. All of these variables are scaled by the lag of firm turnover. Add. Firm. Dir.
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- Riches, Sarah and Vida Allen, Keenan and Riches’ Business Law, 9th ed., Pearson Education Limited, 2009.
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Robb, Alicia M. and David T. Robinson, “The Capital Structure Decisions of New Firms,†Review of Financial Studies, January 2014, 27 (1), 153–179.
Schmalz, Martin C., David A. Sraer, and David Thesmar, “Housing Collateral and Entrepreneurship, †The Journal of Finance, 2017, 72 (1), 99–132.
Stroebel, Johannes and Joseph Vavra, “House Prices, Local Demand, and Retail Prices,†CESifo Working Paper Series 5607, CESifo Group Munich 2015.
- Table 11: Corporate Real Estate: Identification Investment 2002 Lagged Book Value Firm Dispersion Market Value Non Land-Build.
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- Table 15: Residential Real Estate: Sources Of Variation Investment Same Same Same Same Region & Baseline House Region Directors Directors (1) (2) (3) (4) (5) Residential RE 0.0298*** -0.0001 0.0308*** 0.0277*** 0.0161* (0.011) (0.008) (0.012) (0.011) (0.010) Corporate RE 0.0511*** 0.0600*** 0.0503*** 0.0526*** 0.0555*** (0.017) (0.016) (0.017) (0.017) (0.016) Cash 0.0777*** 0.0778*** 0.0777*** 0.0776*** 0.0778*** (0.012) (0.012) (0.012) (0.012) (0.012) Profit 0.1092*** 0.1069*** 0.1096*** 0.1084*** 0.1084*** (0.016) (0.016) (0.016) (0.016) (0.016) Observations 32244 32244 32244 32244 32244 Adjusted R2 0.25 0.25 0.25 0.25 0.25 Add. Firm, Dir. Controls Yes Yes Yes Yes Yes Region-time FE Yes Yes Yes Yes Yes Industry-time FE Yes Yes Yes Yes Yes Firm FE Yes Yes Yes Yes Yes Firm region clustered standard errors in parentheses ? p < 0.10, ?? p < 0.05, ??? p < 0.01.
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- Table 24: Firm Investment and the Real Estate Channels: Excluding Observations After 2008 Investment Baseline 2002-2014 2002-2008 (1) (2) Residential RE 0.0298*** 0.0422*** (0.011) (0.014) Corporate RE 0.0511*** 0.0262 (0.017) (0.027) Cash 0.0777*** 0.0961*** (0.012) (0.019) Profits 0.1092*** 0.0889*** (0.016) (0.024) Observations 32244 18958 Adjusted R2 0.25 0.27 Add. Firm, Dir. Controls Yes Yes Region-time FE Yes Yes Industry-time FE Yes Yes Firm FE Yes Yes Firm region clustered standard errors in parentheses ? p < 0.10, ?? p < 0.05, ??? p < 0.01.
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- Table 26: MCMC Results: Prior and Posterior Distributions of Structural Parameters Parameter Prior Posterior Distribution a b Median Low High hh Beta(a,b) 1.00 2.00 0.0394 0.0000 0.0762 he Beta(a,b) 1.00 2.00 0.5228 0.1428 0.7715 Ω Gamma(a,b) 1.00 0.50 0.2561 0.2103 0.2991 100 (gγ − 1) Gamma(a,b) 1.86 3.01 0.1874 0.0212 0.3795 100 λ̄q − 1
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- Table 4: Firm Investment And The Real Estate Channels Investment Residential Fixed Controls, Just Just RE Effects, No Fixed Residential Corporate Alone No Controls Effects Baseline RE RE (1) (2) (3) (4) (5) (6) Residential RE 0.0478*** 0.0300*** 0.0232** 0.0298*** 0.0375*** (0.007) (0.008) (0.010) (0.011) (0.011) Corporate RE 0.0494*** 0.0691*** 0.0511*** 0.0600*** (0.016) (0.016) (0.017) (0.016) Cash 0.0768*** 0.0777*** 0.0778*** 0.0778*** (0.012) (0.012) (0.012) (0.012) Profits 0.1250*** 0.1092*** 0.1079*** 0.1069*** (0.016) (0.016) (0.016) (0.016) Observations 32509 32244 32509 32244 32244 32244 Adjusted R2 0.21 0.24 0.23 0.25 0.25 0.25 Add. Firm, Dir. Controls No No Yes Yes Yes Yes Region-time FE No Yes No Yes Yes Yes Industry-time FE No Yes No Yes Yes Yes Firm FE Yes Yes Yes Yes Yes Yes Firm region clustered standard errors in parentheses ? p < 0.10, ?? p < 0.05, ??? p < 0.01.
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- Table 9: Heterogeneous Responses: Asymmetries Over Time Investment House Prices Time Period Rising Falling Pre-2007 Post-2007 (1) (2) (3) (4) Residential RE 0.0291*** 0.0364*** 0.0321*** 0.0314*** (0.011) (0.010) (0.010) (0.011) Corporate RE 0.0547*** 0.0301* 0.0650*** 0.0408** (0.017) (0.017) (0.018) (0.017) Cash 0.0787*** 0.0791*** (0.012) (0.012) Profit 0.1090*** 0.1101*** (0.016) (0.016) P-Value, Equality of Residential Coeffs. 0.0459 0.8692 Observations 32244 32244 Adjusted R2 0.25 0.25 Add. Firm, Dir. Controls Yes Yes Region-time FE Yes Yes Industry-time FE Yes Yes Firm FE Yes Yes Firm region clustered standard errors in parentheses ? p < 0.10, ?? p < 0.05, ??? p < 0.01.
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- The complete list of discs used is below: January 2005, December 2005, June 2006, December 2006, May 2007, December 2007, June 2008, December 2008, May 2009, December 2009, June 2010, September 2010, September 2011, December 2011, April 2012, November 2012, August 2013, December 2013, June 2014, September 2014, August 2015.
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- The dependent variable, real estate prices, is defined in log levels. The explanatory variable is the regional share of developable land that was developed in 1990 (constraintsk) interacted with as the 2-year 75%-LTV UK mortgage rate (rt). Region and time fixed effects both included.
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- The sample covers reporting UK firms over the period 2002-2014. The dependent variable, Change in Employment, is defined as the change in “Number of Employeesâ€Â.
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- The sample covers reporting UK firms over the period 2002-2014. The dependent variable, Change in Remuneration, is defined as the change in “Remunerationâ€Â.
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- The sample covers reporting UK firms over the period 2002-2014. The dependent variable, Investment, is defined as the change in “Fixed Assets†less “Depreciationâ€Â.
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- The sample covers reporting UK firms over the period 2002-2014. The dependent variable, Investment, is defined as the change in “Fixed Assets†less “Depreciationâ€Â.
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- The sample covers reporting UK firms over the period 2002-2014. The dependent variable, Investment, is defined as the change in “Fixed Assets†less “Depreciationâ€Â.
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- The sample covers reporting UK firms over the period 2002-2014. The dependent variable, Investment, is defined as the change in “Fixed Assets†less “Depreciationâ€Â.
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