Do firms use credit line drawdowns to finance investment? Using a unique dataset of 467 COMPUSTAT firms with credit … with theory, our results confirm that firms use drawdowns to sustain investment after an idiosyncratic liquidity shock … investment increased to 16 percent. The effect was even larger for smaller and financially constrained firms. We find only …

investment during the years in 2004-2009, and whether this impact, if it existed, differed among companies with differing … investment opportunities. The study has reveals the total debt ratio did have a negative impact on fixed investment among … Jordanian listed companies. It has also been found that the bank ratio had a stronger impact on fixed investment than the total …

. First, empirically, financial activity is lumpy, more than investment activity. Second, non-convex costs are necessary, in … the context of a dynamic investment and financing model, to rationalize this lumpiness. Two versions of the model, with …, generating financial lumpiness higher than investment lumpiness. Other predictions of the model with respect to investment and …

their investment decisions. Moreover, financial con-straints become more severe in times of restrictive monetary policy. …

The downturn in fixed investment among advanced economies from the onset of the global crisis was unusually severe …, widespread and long-lasting relative to comparable episodes in the past. As a result, investment gaps are large in many countries … points of GDP or more in several countries. A significant proportion of this investment shortfall is attributable to soft …

This paper analyzes a model of investment with fixed investment costs and capital market imperfections. In this model … finance influences the level of capital firms hold, as well as the frequency at which they invest. In consequence investment …, when the short-run investment function is estimated, liquidity has a significant impact, which is also strongest for strong …

dynamic model of firm investment and debt in which liquidity constraints enter explicitly into the firm's maximization problem …, so that investment depends positively on the firm's financial position. The optimal policy rules are incorporated into a … investment decisions of firms. Firms ability to raise equity is about 73% of what it would have been under free capital markets …

cyclical behavior of aggregate fixed investment, variable capital investment, and output in the presence of persistent … fixed capital investment is reinforced by the financing constraint. Second, the effect of the financing constraint on … variable capital investment is reinforced by the irreversibility constraint. Finally, the interaction between the two …