We study how interest alignment between CEOs and corporate boards affects investment efficiency. The model entails a … CEO who encounters an investment project and decides either or not to present it for approval to a board of directors. The … CEO may need to collect and report investment-relevant information because the project is novel in the sense that it …

We study how interest alignment between CEOs and corporate boards influences investment efficiency and identify a novel … force behind the benefit of misaligned preferences. Our model entails a CEO who encounters a project, gathers investment …

A simple contracting environment with a creditor who has wealth and a entrepreneur who has a two-period investment …

We examine the effect of credit default swap (CDS) trading on firm investment, finding a post-CDS introduction decrease … controlling for past investment and financing activities. Further analysis reveals a CDS introduction-year increase in debt … increase in bankruptcy risk and debt overhang likely plays a dominant role in the investment effect of CDS, while the expansion …

This study aims to analyze how the company's internal funds and investment opportunities impact the company …’s investment decisions conditional to the financing constraints experienced. We classify companies into three categories based on … financing constraint have a higher investment-cash flow sensitivity than companies with a low financing constraint. We found …

Does corporate governance affect the timing of large investment projects? Hazard model estimates suggest strong … shareholder governance may deter managers from pursuing large investments. Controlling for investment opportunities, firms with … strong CEO incentives (high delta (δ)) we find no such timing differences. Finally, these higher investment hazard firms …

examines the impact of utilizing financial derivative instruments on corporate investment. We document that engaging in … borrowing. Although financial hedging serves as a vehicle for firms to bring their inorganic investment plans to fruition by … facilitating their financing, it also leads to inferior investment choices when conflicts of interest among managers and …

Agency problems in firms are known to influence suboptimal capital investment decisions. Using panel data of publicly … listed firms in India, we find evidence that increased insider ownership is associated with lower investment efficiency, i … not find evidence of increased insider ownership leading to underinvestment (below the optimal level of capital investment …

find that during periods of import tariff cuts and the global financial crisis, investment and firm value are higher for …