decision on a company's investment and financial policy. We compare both the ex-ante and the ex-post characteristics of IPOs … finance subsequent investment and growth, but to reduce leverage; (iv) going public reduces the cost of bank credit; and (v …

index – and investigate how companies react to it by modifying their corporate financial and investment policies. This … timing theory, we find more equity issues and increases in investment in response to higher index addition announcement … returns. However, in the 24 months after the index addition, firms that issue equity and increase investment display negative …

-termism” and overinvestment due to “empire building.” Empirical identification relies on a proxy for optimal investment derived … investment opportunities compared to matched unlisted firms, especially in industries in which stock prices are particularly …-building were the dominant agency problem in the stock market. Our results suggest that the stock market harms investment incentives …

theory of investment and dividend policy, where dividends are paid by self-interested CEOs to maintain a balance between …

managers to work harder, it also induces them to hide any worsening of the firm’s investment opportunities by following largely … sub-optimal investment policies. This problem is especially severe for growth firms, whose stock prices then become …

investment and payout policies. We develop a dynamic general equilibrium model to study the asset pricing and welfare …: countries with higher investment-capital ratios have both larger variance of GDP growth and larger variance of stock returns. …

that generally drive the need for liquidity, such as investment opportunities and asymmetric information, actually become …