consumption, portfolio allocation, financing, investment, and business exit decisions. The optimal capital structure is determined …

Over the past decade, a number of researchers have extended conventional models of business fixed investment to … incorporate a role for financial constraints' in determining investment. This paper reviews developments and challenges in this … challenges. First, I describe analytical underpinnings of models of capital-market imperfections in the investment process, and …

We examine the neoclassical investment model using a panel of U.S. manufacturing firms. The standard model with no … for firms with low (pre-sample) payouts (firms we expect to face financing constraints). Hem, investment is sensitive to … both firm cash flow and macroeconomic credit conditions, holding constant investment opportunities. Sample splits based on …

measures of liquidity on the investment decisions of U. K. firms. These variables are introduced via an extension of the Q … model of investment which explicitly includes agency/financial distress costs. We discuss if the significance of cash flow …

, investment may display "excess sensitivity" to movements in cash flow. In this paper, we work within the q theory of investment …Most empirical models of investment rely on the assumption that firms are able to respond to prices set in centralized … determinant of investment spending, because of a "financing hierarchy," in which internal finance has important cost advantages …

industry from 1991 to 1996. Plant-level decisions on R&D, physical capital investment, entry, and exit are integrated in a … physical investment, and plant scrap value distribution. Knowledge spillovers are essential to explaining the firm …

We provide new evidence on how monetary policy affects investment and firm finance in the United States and the United … conditioning on size, asset growth, Tobin's Q, leverage or liquidity - and drive the response of aggregate investment. Older … and financial frictions in amplifying the effects of monetary policy on investment …