This paper attempts to test whether financial supply-side shifts explain the low-investment climate of private firms in …

This article tests the hypothesis that financial supply-side shifts help to explain the low-investment climate of …

How do firms vary their capital investment and financing policies in response to business cycle fluctuations within … aggregate business cycle, we find that firm-level capital investment and debt issuance are procyclical, whereas net equity …

debt is strongly negatively correlated with corporate debt and investment, but strongly positively correlated with … strategy influences firms' capital structures and investment policies …

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 …

-pronged approach to investigate the relationship between corporate leverage and fixed investment spending. The empirical analysis …

firm investments, proxied by total, short- and long-term investment. The results remain robust when we control for the … shift their investment from long- to short-term investment, given their unaffected credit ratings after undesirable … sovereign rating events. Conversely, firms’ investment is unaltered by the sovereign upgrades. Our findings also confirm that …

In this paper, we investigate the damage to real-sector investment spending and corporate financing activities … triggered by the failure of three major investment banks during the 2007-09 financial crisis. We find that firms characterized … by pre-crisis corporate investment banking relationships with troubled investment banks exhibit significantly lower post …