We take a simple q-theory model and ask how well it can explain external financing anomalies, both qualitatively and … 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 - results that are consistent with the model's predictions. …

investment - results that are consistent with the model's predictions. -- investment ; stock market ; bubble ; dispersion …

We document sizeable and surprising differences in investment behavior between stock market listed and privately held … responsive to changes in investment opportunities compared to matched private firms, even during the recent financial crisis … that investment behavior diverges most strongly in industries in which stock prices are particularly sensitive to current …

We investigate whether short-termism distorts the investment decisions of stock market listed firms. To do so, we … compare the investment behavior of observably similar public and private firms using a new data source on private U.S. firms … compared to private firms, public firms invest substantially less and are less responsive to changes in investment …

(3) active trading by common owners. Further, we find that the investment sensitivity to Tobin’s Q for commonly held …

-space marginal q requires only general restrictions on the stochastic discount factor and the firm investment technology, and it uses … simple linear estimation methods. Consistently with a large class of neoclassical investment models, I construct the state …-space marginal q using the firm capital stock and profitability shocks. I show that this new measure of real investment opportunities …

This paper examines to what extent stock market anomalies are driven by firm fundamentals in an investment-based asset … anomaly. The estimated model generates large and significant size, momentum, profitability, investment, and intangibles …