We study the effects of monetary-policy-induced changes in Tobin's q on corporate investment and capital structure. We … evidence, and quantify the relevance for monetary transmission to aggregate investment …

, scope, and investment decisions, and we outline their connection to recent macroeconomic and financial trends in the US …

discount rates and thereby raise real investment. We analyze the macroeconomic implications of sticky discount rates using a … New Keynesian model. The model naturally generates investment-consumption comovement in response to household demand … shocks and higher investment in response to government spending. Sticky discount rates imply that inflation has real effects …

Standard theory implies that the discount rates used by firms in investment decisions (i.e., their required returns to … capital) determine investment and transmit financial shocks to the real economy. However, there exists little evidence on how … firms' discount rates change over time and affect investment. We construct a new global database based on manual entry from …

We create a firm-level ChatGPT investment score, based on conference calls, that measures managers' anticipated changes … survey responses. The investment score predicts future capital expenditure for up to nine quarters, controlling for Tobin's q … and other determinants, implying the investment score provides incremental information about firms' future investment …

We study the role of financial frictions in determining the allocation of investment and innovation. Empirically, we … find that firms are investment-intensive when they have low net worth but become innovation-intensive as they accumulate … frictions. In our model, low net worth firms are investment-intensive because their returns to capital are high. Financial …

choices, especially for firms with flexible investment policies. The presence of the interest tax deduction raises consumer …

-term debt capacity, and will find their borrowing becoming increasingly short-term as they finance illiquid investment. Thus it … is the increasing illiquidity of the investment being financed (or the deteriorating credit quality of borrowers) that … investment against the benefits of greater stability. A ban on short-term debt often deals with symptoms rather than underlying …