-preserving investment …

We explore the impact of investment-specific technology (IST) shocks on the crosssection of stock returns. IST shocks … reflect technological advances embodied in new capital goods. Using a structural model, we show that IST shocks have a … opportunities. This differential sensitivity to IST shocks has two main implications. First, risk premia on firms with abundant …

This paper proposes that idiosyncratic firm-level fluctuations can explain an important part of aggregate shocks, and … provide a microfoundation for aggregate productivity shocks. Existing research has focused on using aggregate shocks to … explain business cycles, arguing that individual firm shocks average out in aggregate. I show that this argument breaks down …

Using linked employer-employee data for the U.S., we examine whether shocks to firm revenues are transmitted to the … persistent shocks in firm revenues is small and consistent with the notion that firms insulate workers from idiosyncratic shocks …

-specific costs of capital. We show that SOEs did respond to the performance evaluation reform by altering their investment decisions … evidence that incentive schemes affect real investment and sheds new light on challenges faced by economic reforms in China …

shocks. Consistent with neoclassical views, however, technological factors are the most important investment determinant on …The ifo Investment Survey asks firms in the German manufacturing sector about the importance of sales, technological … factors, finance, return expectations, and macroeconomic policy for their investment activity in a given year. We show that …

We show that supply-side financial shocks have a large impact on firms' investment. We develop a new methodology to … separate firm-borrowing shocks from bank-supply shocks using a vast sample of matched bank-firm lending data. We decompose … aggregate loan movements in Japan for the period 1990 to 2010 into bank, firm, industry, and common shocks. The high degree of …

technological shocks embodied in new capital (IST shocks), which affect the profitability of new investments. Firms' exposure to IST … shocks is endogenously determined by the fraction of firm value due to growth opportunities. In our structural model, several … firm characteristics - Tobin's Q, past investment, earnings-price ratios, market betas, and idiosyncratic volatility of …

payouts by stimulating investment in response to adverse shocks only up to a level below the first-best. The optimal monetary …, potentially spurring productive investment. Low interest rates, however, also induce entrepreneurs to lever up so as to increase … their incentives thereby lowering productivity and discouraging investment. If leverage is unregulated (for example, due to …