We study how foreign competition affects the composition of investments inside firms. A parsimonious model predicts that firms have an incentive to shift their investments towards more short-term assets when exposed to tougher competition. Using data on expenditures of listed US companies into...

The objective of this paper is to empirically determine the investment determinants at the firm level. Many empirical papers studied the investment determinants from a macroeconomic point of view but the analysis of the main investment determinants from an internal point of view has been less...