Cash Flow Multipliers and Optimal Investment Decisions
通过构建现金流随机过程模型，研究现金流乘数与最优投资政策的关系，发现乘数随投资增加而递减增长，并与贴现率负相关，实证数据支持模型结论。
Abstract Valuation multipliers are frequently used in practice. By postulating a simple stochastic process for the firm's cash flows in which the drift and the variance of the process depend on the investment policy, we develop a stylised model that links the cash flow multiplier to the optimal investment policy. Our model implies that the multiplier increases with investment at a decreasing rate. On the other hand, the multiplier is inversely related to discount rates. Using an extensive data set we examine the implications of our model. We find strong support for the variables postulated by the model.