We analyze firms’ investment behavior, differentiating firms according to the cash flow levels they experience during … positive cash flow show higher investment-cash flow sensitivity than firms with persistent negative cash flow. Independent of …

, stock returns equal levered investment returns that are tied directly with characteristics. This equation generates the … relations of average returns with book-to-market, investment, and earnings surprises. We estimate the model by minimizing the … differences between average stock returns and average levered investment returns via GMM. Our model captures well the average …

The q-theory implies that investment is a first-order determinant of the cross section of expected returns, and that … optimal investment drives the external financing anomalies. Our neoclassical model simultaneously and in many cases … relation between investment and average returns; long-term underperformance following equity issuance; the mean …

quantitatively. Our central insight is that optimal investment is an important driving force of these anomalies. The model … simultaneously reproduces procyclical equity issuance waves, the negative relation between investment and average returns, long …

investment. Leverage targets conservatively embed the option to issue transitory debt, with the evolution of leverage reflecting … the sequence of investment outlays. We estimate a dynamic capital structure model with these features and find that it … the leverage changes accompanying investment quot;spikes.quot; It generates leverage ratios with slow average speeds of …

This paper investigates the investment behaviour of a large panel of Hungarian firms in the period 1989–99, in order to … financial factors for investment decisions has changed significantly after the introduction of major financial reforms, and that …

This paper investigates the financial determinants of investment decisions made by Slovenian family farms during the … farms’ investment decisions were based on market opportunities during this period, ruling out the presence of soft budget …-significant impact of investment subsidies received by farms, but a positive impact of operational subsidies for small farms only, on the …

This paper analyzes the relationship between investment behavior of firms and ownership and corporate governance … firms and its effect on investment behavior via the presence of private benefits of control, financial and soft budget … constraints. We find a negative impact of government ownership on investment and evidence for soft budget constraints. Foreign …

The paper examines the interpretation of firms' investment-cash flow sensitivity as an artifact of financial market … investment-cash flow sensitivity is discussed as well as some of the macroeconomic implications of financial market imperfections. …

from their impact on decisions related to investment in physical capital. We argue that as long as firms use both inputs in …