This essay surveys the body of research that asks how the efficiency of corporate investment is influenced by problems … that the marginal return to investment in firm i is the same as the marginal return to investment in firm j? Second, do … capital budgeting process get within-firm allocations right, so that the marginal return to investment in firm i's division A …

We study the effects of monetary-policy-induced changes in Tobin's q on corporate investment and capital structure. We … develop a theory of the mechanism, provide empirical evidence, evaluate the ability of the quantitative theory to match the … evidence, and quantify the relevance for monetary transmission to aggregate investment …

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 over …

We study investment options in a dynamic agency model. Moral hazard creates an option to wait and agency conflicts … affect the timing of investment. The model sheds light, theoretically and quantitatively, on the evolution of firms' dynamics …

We use a new firm-level dataset to examine the efficiency of investment in emerging economies. In the three-year period … by an average of 5.4 percentage points. Cross-sectional changes in investment are significantly correlated with the … investment; country-specific changes in the cost of capital predict a 2.3-percentage point increase in investment; firm …

This paper provides a model of investment timing by managers in a decentralized firm in the presence of agency … conflicts and information asymmetries. When investment decisions are delegated to managers, contracts must be designed to …'s option. The implied investment behavior differs significantly from that of the first-best no-agency solution. In particular …