1. working capital as item 4 minus item 5, capital expenditures as item 128, dividends as the sum of items 19 and 21, long-term debt as item 9, short term debt as item 34 plus item 44, the number of common shares as item 25, the share price as item 199, balance sheet deferred taxes as item 74, equity issuance as item 108, employment as item 29, the book value of common equity as item 60, and share repurchases as item 115. As in Rauh we define nonpension cash flow as the sum of items 14, 18, and 43, and cash flow as nonpension cash flow minus total pension contributions from IRS form 5500. The numerator of the market-to-book ratio is book assets minus the book value of common equity minus deferred taxes plus the product of the share price and the number of shares outstanding. The denominator is total book assets;For our data from Compustat we define book assets as item 6, cash as item 1, inventories as item 3
2. What do firms do with cash windfalls;References Blanchard;Journal of Financial Economics,1994
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4. Nominal rigidities and the dynamic effects of a shock to monetary policy;Lawrence J Christiano;Journal of Political Economy,2005
5. Measurement error and the relationship between investment and q;Timothy Erickson;Journal of Political Economy,2000