We study the effects of monetary-policy-induced changes in Tobin's q on corporate investment and capital structure. We … develop a theory of the mechanism, provide empirical evidence, evaluate the ability of the quantitative theory to match the … evidence, and quantify the relevance for monetary transmission to aggregate investment …

Textbook theory assumes that firm managers maximize the net present value of future cash flows. But when you ask them …

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

choices, especially for firms with flexible investment policies. The presence of the interest tax deduction raises consumer …

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

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 …

, scope, and investment decisions, and we outline their connection to recent macroeconomic and financial trends in the US …

We compare the investment of standalone firms across regions after a positive shock to the investment opportunities … generated by a large-scale highway development project. We show that the standalones' investment sensitivity is lower in regions …