Firm-level investment paths are commonly characterised by periods of low or zero investment punctuated by large … investment ‘spikes’. We document that such spikes are important for understanding firm and aggregate level investment in the UK …. We show that annual variation in aggregate investment is driven by variation in the number of firms undertaking investment …

A firm's leverage increases its bargaining power and reduces suppliers' relation-specific investment, and so does …

exogenous. Corporate Finance theory states that the optimisation of investment opportunities is one of three drivers of optimal … react upon investment opportunities, and we show how it can be optimised to maximise the firm's growth. As an illustration … structure should incorporate the competitive position of the firm as well as the availability of investment opportunities. Our …

have a significantly higher investment-cash flow sensitivity than comparable private firms. These differences in investment … agency-based explanation, since differences in investment-cash flow sensitivities can only be observed for the unexpected …. Our study adds a new aspect to the ongoing debate on the effect of a stock market listing on a firm's investment decisions …

rents and payout. They do not exploit interest tax shields fully. The interactions of investment, debt and payout decisions … can change drastically depending on managers' preferences. Managers with power utility set investment, debt and payout …, investment decisions are separated from decisions about debt and payout. More profitable firms become cash cows and less …

We study the interaction between financing and investment decisions in a dynamic model where the firm has multiple debt … issues and equityholders choose the timing of investment. Jointly optimal capital and priority structures can virtually … eliminate investment distortions, because debt priority serves as a dynamically optimal contract. Examining the relative …

We study the effects of uncertainty on corporate leverage adjustments with respect to investment spikes and find that … overlevered and underlevered firms behave very differently in response to the combination of uncertainty and investment spikes …

debt when financing investment to retain financial flexibility. Underutilization of debt persists even when firms exercise … their last investment options, and it is more (less) severe for more back-loaded (front-loaded) investment opportunities …. Thus, leverage dynamics crucially hinge upon the structure of the investment process and otherwise identical firms appear …

We investigate a firm's optimal investment, financing, and default decisions when it takes an uncertain amount of time … and running costs to complete a project. A firm that makes an optimal financing decision delays investment in the presence … of time-to-build, whereas a highly levered firm hastens such investment despite the lags. The optimal leverage ratio is …