The aim of this paper is to study the impact of bankruptcy law on financing, investment, default and liquidation … decisions of firms. We build a model in which a firm can finance its investment by issuing debt. The investment is risky …. Because of risk, the firm may default. The firm manager takes investment and default decisions in order to maximize the value …

flexible descriptions of preferences and investment opportunities to derive optimal decision rules that nest tactical, myopic … results reveal that i) purely tactical and myopic investment behaviors are unambiguously rejected, ii) strategic portfolio …

The purpose of this paper is to empirically investigate the interaction between hedging, financing, and investment … differs for firms with different growth opportunities. We empirically find that high-growth firms increase their investment …, but not their leverage, by hedging. However, we also find that firms with few investment opportunities use derivatives to …

We examine the interplay of endogenous vertical integration and costreducing downstream investment in successive …, we establish the following main results: First, vertical integration increases own investment and decreases competitor … investment (intimidation effect). Second, asymmetric equilibria typically involve integrated firms that invest more into …

We argue that positive comovements between land prices and business investment are a driving force behind the broad … joint dynamics of land prices and business investment. …

guarantee existence. When investment adjustment costs are introduced, the monetary and fiscal policy dichotomy is in principle …

adjustment function implies that aggregate investment is relatively unresponsive to aggregate shocks in deep recessions as …

emerging markets. The paper measures the risk of short-term exposure by estimating, at the firm level, the effect on investment … not find that this reduction in net worth translates into a drop in investment. …

more favourable loan package; that it is associated with over-investment even when investment does not create collateral …

We argue that, in a simple setting, the relation between the intensity of competition and cost-reducing investment is U … show that, except for firms that are much less efficient than the competitor, investment in the subgame-perfect equilibrium …