In this paper we investigate the analytical and empirical linkages between firms' capital investment behavior and … significant negative impact on firms' investment spending, while extrinsic uncertainty has a positive impact. …

In a neoclassical investment model, returns and investment are linked. We show that the timing of investment and … returns are also linked. Conditional on total investment, firms investing earlier in the year have lower returns than firms …, regressing returns on annual investment year produces a much weaker relationship between returns and investment than regressing …

firm characteristics - Tobin's Q, past investment, earnings-price ratios, market betas, and idiosyncratic volatility of … returns by aggregate investment and valuation ratios; and v) a downward sloping term structure of risk premia for dividend … strips. Our model delivers testable predictions about the behavior of firm-level real variables - investment and output …

quarters of the variation in real annual aggregate investment growth between 1948 and 1993. The negative correlation of … contemporaneous investment and stock returns is explained by the negative correlation of planned investment and subsequent stock … returns. Unexpected revisions to aggregate investment (actual minus plan) within a year are essentially unrelated to current …

investment firm HQ and portfolio firm HQ, or a cross-region indicator variable when the portfolio firm HQ is out-of-state as … compared to VC investment firm HQ. The relation between investment proximity and returns continues to be robust even after … controlling for selection bias, and in a matched-sample analysis where we pair each proximate investment with a matched distant …

premia across U.S. industries and show that the negative investment-return relation implied by q-theory is steeper for firms … paying high wage premia than for firms paying low wage premia. An extended investment-based model predicts the interaction … effect, showing the labor adjustment costs as key channel driving investment-return sensitivity. The inflexibility induced by …