We study the effects of monetary-policy-induced changes in Tobin's q on corporate investment and capital structure. We … evidence, and quantify the relevance for monetary transmission to aggregate investment …

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

. Third, the fund will be set up in a manner similar to that observed in practice, with investments pooled within a fund …, decision rights over investments held by the general partner, and limits set in partnership agreements on the size of … particular investments. Fourth, the model suggests that incentives will lead to overinvestment in good states of the world and …

companies. I test the joint hypothesis that 1) a decrease in cash/collateral decreases investment, holding fixed the … profitability of investment, and 2) the finance costs of different parts of the same corporation are interdependent. The results … support this joint hypothesis: oil companies significantly reduced their non-oil investment compared to the median industry …

private firms is correlated with lower investment. Our findings have important implications for theories on how firm leverage … and investment relate to economic fluctuations …

prevalence of incurrence covenants indirectly imposes significant constraints on investments as restricted actions become binding …: Similar to the effects associated with the shift of control rights to creditors in traditional loans, the drop in investment … under incurrence covenants is large and sudden. The deleveraging and drop in investment and market value associated with …