This paper investigates whether investment spending of firms is sensitive to the availability of internal funds ….Imperfect capital markets create a hierarchy for the different sources of funds such that investment and financial decisions are not … independent.The relation between corporate investment and free cash flow is investigated using the Bond and Meghir (1994a) Euler …

zero.Comparing the returns of investment in capital goods of different age, the higher productivity of younger capital … feature for the firm's investment policies are investigated in an optimal control problem with distributed parameters.It turns … out that investing in capital goods of di¤erent age is done such that the net present value of marginal investment equals …

This paper considers the impact of investment cost asymmetry on the value and optimal real option exercise strategies … the level of asymmetry, a marginal increase in the investment cost of the firm with the cost disadvantage can increase … socially less desirable outcome than if one of the competitors has a significant investment cost disadvantage.Finally, we prove …

This paper considers the problem of investment timing under uncertainty in a duopoly framework.When both firms want to …