shareholders and managers in which managers have private benefits or private costs of investment. Managers overinvest when they … compensation, investment, and firm performance for both cases. The relationship between firm performance and managerial incentives …, in isolation, is insufficient to identify whether managers have private benefits or private costs of investment. In order …

This paper is a contribution to the small but growing literature that compares the investment and R&D behavior of … of a simple error-corrected investment model for both ordinary investment and for R&D investment, a model that … incorporates both output (sales or turnover) and cash flow as predictors for investment. Our focus is on two comparisons: France …

This paper studies managerial decisions about investment in long-run projects in the presence of imperfect information … imperfection present and the direction of the distortion. When investors cannot observe the level of investment in long …-run projects, suboptimal investment will be induced. When investors can observe investment but not its productivity, however, an …

. Often this problem is ignored in the theory of investment, not only because depreciation is exogenous, but also due to the … interdependence with investment decisions. The approach is based on the view that the flow of undepreciated capital is an output to be …

In the presence of asymmetric information, the stage at which financing decisions are made about investment projects in … channeling savings into investment. This paper compares the implications of two extreme cases regarding the information possessed …

This paper assesses different organizational forms in terms of their ability to generate information about investment … costlessly hardened' and passed along within the hierarchy. As a concrete application of the theory, the paper discusses the …, this is exactly what the theory would lead one to expect …

Kaplan and Zingales [1997] provide both theoretical arguments and empirical evidence that investment-cash flow …