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 …

investment by 2.5% more (on a quarterly basis) than otherwise similar firms whose debt was scheduled to mature well after 2008 …. This relative decline in investment is statistically significant and economically large, representing approximately one …-third of pre-crisis investment levels. A number of falsification and placebo tests confirm our inferences about the effect of …

Adding a return factor based on capital investment into standard, calendar-time factor regressions makes … issuers invest more than nonissuers matched on size and book-to-market. Moreover, the low-minus-high investment … the negative investment-expected return relation, as predicted by Carlson, Fisher, and Giammarino (2005). …

We develop a model of investment timing under uncertainty for a financially constrained firm. Facing external financing … costs, the firm prefers to fund its investment through internal funds, so that the firm's optimal investment policy and …, and at times as a substitute, to the real flexibility given by the optimal timing of investment. We show that: 1) the …

implication that firms with low hedging needs (high correlation between cash flows and investment opportunities) are more likely …

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

This paper uses firm-level panel data to analyze the role of financial factors in determining investment outcomes … parameter estimates imply that financial factors may account for 50% to 80% of the overall drop in investment observed during … this episode. Our estimates also imply that foreign-denominated debt had relatively little effect on aggregate investment …

stock market bubble by issuing new equity. The bubble reduces the user-cost of capital and increase real investment. Using … real investment. …

the model, firms are heterogeneous in productivity and make investment and financing decisions subject to capital … are unexpected and permanent, dividend payments, equity issuance, and aggregate investment rise immediately. By contrast …, when these tax cuts are unexpected and temporary, aggregate investment falls in the short run. This fall allows firms to …

The neoclassical investment model matches cross-sectional asset prices both in first differences and in levels. With … ten book-to-market deciles as the testing portfolios, the investment model largely matches the Tobin's Q spread and the … between asset prices and investment; and (iii) we allow for nonlinear marginal costs of investment. Our evidence suggests that …