We provide robust empirical evidence of size effects in corporate investments. Small firms have significantly higher investment rates than large firms, even after controlling for standard empirical proxies of firm real investment opportunities and financial status, including Tobin's Q and cash...

We provide robust empirical evidence of conditional convergence in corporate investments among US firms. Small firms have significantly higher investment rates than large firms even after controlling for standard empirical proxies of firm investment opportunities and financial status, such as...