returns by aggregate investment and valuation ratios; and v) a downward sloping term structure of risk premia for dividend … firm characteristics - Tobin's Q, past investment, earnings-price ratios, market betas, and idiosyncratic volatility of … the firm's exposure to IST shocks and risk premia. Our calibrated model replicates: i) the predictability of returns by …

The optimal timing of real investment is studied under the assumptions that investment is irreversible and that new … information about returns is arriving over time. Investment should be undertaken in this case only when the costs of deferring the … new information, retards the current rate of investment. The nature of investor's optimal reactions to events whose …

find that policy uncertainty raises stock price volatility and reduces investment and employment in policy … foreshadow declines in investment, output, and employment in the United States and, in a panel VAR setting, for 12 major …

frictions. We illustrate these results by studying one of the largest tax incentives for investment in recent history: China …A universal fact of firm-level data is that investment is lumpy: firms either replace a considerable fraction of their … existing capital (spike) or do not invest at all (inaction). This paper incorporates the lumpy nature of investment into the …

Government subsidies are often used to stimulate environment-friendly investment. We find that Chinese firms reduce … green investment as the uncertainty of subsidies rises. This effect is identified from weather-driven fluctuations in air … engage in less green R&D investment, patent applications, and research staff. Industries that are heavy emitters and those …

overconfident if they persistently fail to reduce their personal exposure to company-specific risk. We find that investment of …We argue that managerial overconfidence can account for corporate investment distortions. Overconfident managers … overestimate the returns to their investment projects and view external funds as unduly costly. Thus, they overinvest when they …

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

In this article we develop a model to analyze patent-protected R&D investment projects when there is (imperfect …. These benefits to society are countered by increased total investment costs in R&D and lower aggregate value of the R …&D investment projects …

We examine the investment decision problem of a group whose members have heterogeneous time preferences. In particular … exponential discounting for their collective investment decisions even if all agents discount exponentially. We also exhibit …

The empirical literature that seeks to measure the effective tax rate on new investment offers a striking paradox. On … the one hand, summary measures of the effective tax rate on new investment are normally quite high. On the other hand, the … factors, including resale of assets (churning), risk, pure profits, debt finance and arbitrage, and choice of organizational …