We build a model of investment and financing decisions to study the choice between bonds and bank loans in a firm …'s marginal financing decision and its effects on corporate investment. We show that firms with more growth options, higher … investment. We test these predictions using a sample of U.S. firms and present new evidence that supports our theory …

This study investigates the effect of banks' dual holding on bank lending and firms' investment decisions using a … and harms the investment efficiency for SOEs, while resulting in optimal lending decisions and enhanced investment … efficiency for non-SOEs. For non-SOEs, further analysis suggests that optimal lending decisions and efficient investment can be …

In this paper we study the relationship between firm age, the use of external finance and new investment decisions, in …, suggesting that greater financial development and a stronger investment climate offers young firms greater access to bank … firms that report a need for credit, but did not apply for a loan, have the lowest incidence and amount of investment. Our …

investigates the effects of banking deregulation on research and development (R&D) investment and provides a reference for firm … innovation. The results show that city bank entry increases R&D investment by 0.084% and R&D investment increases by 0 …&D investment by reducing financing constraints. The impacts of city banks' cross-regional operations on R&D investment are …

corporate investment. We show that in a sample of publicly listed firms in 10 advanced and emerging markets economies during the … period 1990–2013, bank systemic risk is positively associated with the corporate investment, after controlling for a large … corporate investment varies, depending on firm size and growth opportunities …

corporate investment. We document that in a sample of publicly listed firms in the United States over the period 1991-2013, bank … systemic risk is positively associated with the firm-level investment ratio after controlling for a large set of country … risk on corporate investment, suggesting that more financially constrained firms experience a larger effect of bank …

This study focuses on physical and R&D investments to examine the effect of bank shocks on corporate investment … this period, thereby enhancing the granularity of bank shocks. The estimation result of the Q-type investment function … reveals that bank shocks become highly relevant for firms' physical investment than R&D investment. Specifically, a negative …

asymmetries. Based on the prediction by Rajan (1992), we examine how changes in short-term bank loan ratio affect firm investment … behavior. We confirm that, while investment by bank-dependent firms reduces with increasing ratio of short-term loans, this … results presented here help explain why firms without access to public debt have consistently lower investment rates than …