Using a newly constructed panel dataset of German enterprises, I estimate R&D and capital investment equations for the … time period from 1990 to 1994. Simple accelerator specifications indicate considerable sensitivity of R&D and investment to … account, but a significant positive relationship between cash flow and investment remains for relatively small firms. In the …

The corporate finance literature documents that managers tend to over-invest in their companies. A number of … between shareholders and managers. The present paper shows that over-investments are not necessarily the (negative …) consequence of agency problems between shareholders and managers, but instead might be a second-best optimal response to address …

financial firms' expectations about the availability of longer-term liquidity in the future may affect their investment … decisions today, even though they have full access to borrowing at the onset. These investment decisions may in turn impact on … that firms of high credit quality may be particularly prone to choosing inefficient investment decisions for this very …

We show that credit supply shocks have a strong impact on firm-level as well as aggregate investment by applying the … are found to impair firm-level investment in all firms in our sample, but in particular for small firms and those with no … 20–40% of aggregate investment dynamics. …