Most frequently encountered issues concerning dynamic methods are associated with the question which efficiency evaluation criterion to choose for the assessment of an investment project. Available literature focuses on the area of constructing isolated multi-period models, yet it is more...

This paper extends the Ackerberg–Caves–Frazer approach to a nonparametric aggregate production function to address both the endogeneity and the function misspecification issues in estimating the returns to infrastructure and private capital and thus the optimal allocation between them. Based...

We investigate how high-profile accounting frauds affect peer firms' investment. We document that peers react to the fraudulent reports by increasing investment during fraud periods. We show that this finding is not driven by frauds that have a higher ex ante likelihood of detection or by an...

This study investigates whether and how banks’ lending incentives influence firms’ investment behaviors in China. First, empirical results show that loans granted to politically connected firms are less influenced by those firms’ profitability and tangibility. Second, political connection...