We develop a model of investment with financial constraints and use it to investigate the relation between investment … between q and investment, relative to the frictionless benchmark. We present a calibrated version of the model, which, due to … this effect, generates realistic correlations between investment, q, and cash flow. …

approach to capital investment decisions, by means of a two-tiered framework of analysis. Such approach consists in working out …

This paper investigates the impacts of defined-benefit (DB) pension plans on the corporate investment choices between … making a major investment. Subject to a major investment decision, however, the firm with higher DB plan coverage is more … countries or industries with a strongly unionized workforce. Further analysis on post-investment performance shows that firms …

We study how interest alignment between CEOs and corporate boards influences investment efficiency and identify a novel … force behind the benefit of misaligned preferences. Our model entails a CEO who encounters a project, gathers investment …

-related information. This exacerbates pre-existing agency frictions and may lead to investment inefficiencies. To counteract this … expense of residual inefficiency. Our findings thus highlight that shareholders' tolerance for investment inefficiencies may … and boards may impact investment efficiency, information quality, project profits, and management rents in a non …