Faulkender, Flannery, Hankins, and Smith (2012)

Review Faulkender, Flannery, Hankins, and Smith (2012) and recreate Tables 1, 2, and 3 using data up to the end of 2019. You will probably need data from Compustat, CRSP, and Ken French’s website. Keep in mind that the regression estimated is a Blundell-Bond GMM system estimator, so you must also use Blundell-Bond. Compare and contrast your results with those from the original paper; include both quantitative and qualitative comparisons. When reproducing someone else’s results, it is good practice to also include estimates using the same sample and time period as the original (1965-2006)—this is also a good check that you’ve done everything correctly.