debt is strongly negatively correlated with corporate debt and investment, but strongly positively correlated with … strategy influences firms' capital structures and investment policies. …

with investor "rationality," the relation must be "explained" by a risk factor model. The investment approach changes the …-based factor models are linear approximations of firm-level investment returns. The evidence that characteristics dominate … important, the investment approach completes the consumption approach in general equilibrium, especially for cross …

,s) firm-level investment policies. In the presence of persistent heterogeneity in capital, debt and total factor productivity …

technologically older, vintage capital in the airline industry. Using a panel of aircraft-level data around the world, we find that …

We study the effect of variation in interest rates on investment spending, employing a large panel data set that links … quantitatively important effect of the user cost of capital on the firm-level investment decisions. According to our estimates, a 1 … percentage point increase in the user cost of capital implies a reduction in the investment rate of 50 to 75 basis points and, in …

policies and events. Under certain conditions, stock return equals investment return, which is directly tied with firm … relations of future stock returns with market-to-book, investment and disinvestment rates, seasoned equity offerings, tender …

, stock returns equal levered investment returns that are tied directly with characteristics. This equation generates the … relations of average returns with book-to-market, investment, and earnings surprises. We estimate the model by minimizing the … differences between average stock returns and average levered investment returns via GMM. Our model captures well the average …