This paper examines the importance of financial constraints for firm investment expenditures by looking at the … relationship between investment expenditures and proceeds from voluntary asset sales in financially healthy US manufacturing … companies. Specifically, we examine whether asset sales have a greater influence on investment expenditures for firms that are …

This paper examines the importance of financial constraints for firm investment expenditures by looking at the … relationship between investment expenditures and proceeds from voluntary asset sales in financially healthy US manufacturing … companies. Specifically, we examine whether asset sales have a greater influence on investment expenditures for firms that are …

, by unobserved shocks to participation by informationless traders, and by real investment. The equilibrium relations …

negative abnormal capital investment/return relation is shown to be stronger for firms that have greater investment discretion … to the empire building implications of increased investment expenditures. Although firms that increase capital … investments tend to have high past returns and often issue equity, the negative abnormal capital investment/return relation is …

negative abnormal capital investment/return relation is shown to be stronger for firms that have greater investment discretion … to the empire building implications of increased investment expenditures. Although firms that increase capital … investments tend to have high past returns and often issue equity, the negative abnormal capital investment/return relation is …