: Using the Markov-regime switching technique, this paper attempts to explain what drives the US gross fixed capital investment at an aggregate level. The focus of the paper is on the role of the cost of capital in determining the probability of switching between high and low investment-growth...

Globalization and the ICT revolution of the 1990s have forced many firms to reorganize in order to survive in a more competitive market. There are several approaches that can be used to assess the measurement of organization capital since it is unobservable. Using an optimizing firm model and...

According to the cost-of-capital hypothesis, increased voluntary disclosure should reduce information asymmetries, lower the cost of capital, and increase firm value. The optimal-disclosure hypothesis, however, predicts that costs related to voluntary disclosure lead to the existence of an...

The paper investigates the increasing ratio of financial asset aquisition to net fixed capital formation using the financial account statistic of the Deutsche Bundesbank. An increasing ratio is measured for all german sectors as well as for the producing enterprises. Using descriptive methods...

Several empirical papers find that firms a priori classified as liquidity constrained exhibit greater sensitivity of investment to cash flow than those classified as unconstrained. In this paper we analyse the robustness of these findings in different ways. We use three different methods...

In spite of the fact that shareholders exercise their options when it is in the money, s eparation of ownership and control creates the necessity of verifying the adoption of corporate governance mechanism, such as Executive Stock Option Scheme (ESOs). This study verifies the relationship...

The long-run determinants of euro area FDI to the United States during the period 1980-2001 are explained by employing the Tobin's Q-model of investment. By using the fixed effects panel estimator, stock market developments in the euro area countries - including a measure adjusted for economic...

This study investigates the effect of information technology (IT) architecture flexibility on strategic alliance formation and firm value. We first examine the effect of three dimensions of IT architecture flexibility (open communication standards, cross-functional transparency, and modularity)...

It can be observed that many R&D performing firms produce scientific knowledge and discloseresearch outcomes in scientific journals. At the micro-level, prior work identified several potentialbenefits of such a strategy like superior access to informal information networks or the opportunity...

We develop a simple theoretical model of investment under the assumption that financial frictions generate adjustment costs different from those of industrial origin that are normally discussed in the literature. We identify several restrictions that are used to test and estimate the model using...