A detailed treatment of aggregation and capital heterogeneity substantially improves the performance of the investment … capital. The model fits well the value, momentum, investment, and profitability premiums simultaneously and partially explains … profitability premiums, as well as the countercyclical and long-term dynamics of the value and investment premiums. However, the …

considered here may affect the sensitiveness of investment to cash flow. Large firms, stock market listed firms as well as firms …

In this paper we describe a theoretical model of optimal investment of various types of financially constrained firms …. We show that the resulting relationship between internal funds and investment is non-monotonic. In particular, the … magnitude of the cash flow sensitivity of the investment is lower for firms with credit rationing compared to firms that are …

firm's investment is comparatively more sensitive to cash flow, but this sensitivity is negatively and significantly … related with corporate efficiency. These results point to the fact that high investment sensitivity to cash flow may not be … solely driven by measurement error in investment opportunity, but may still be interpreted as a consequence of imperfect …

We survey recent microeconometric research on investment and employment that has used panel data on individual firms or … theory of the demand for capital and labour, on which most of the econometric models of investment and employment that we … of adjustment, which have played a prominent role especially in the microeconometric literature on investment. With …

method of checking the informational content of the data is developed. The relationship between investment activity and … constraints do indeed play a part in the investment process. Second, small firms close their capacity gaps faster than large firms …