and dividends---is incomplete and misleading: it ignores large offsetting equity issuances that move capital from … investment and cash balances have increased. In sum, the data provide little basis for the view that short-termism in the EU …

activities come from investment, dividends, or net cash. The model fits a broad set of data moments in large heterogeneous …We estimate a dynamic investment model in which firms finance with equity, cash, or debt. Misvaluation affects equity … than investment. The investment responses are strongest for small firms but nonetheless modest. Managers' rational …

We find that institutions with short and long investment horizons have different effects on corporate payout policy …. Firms with higher long (short) term institutional holdings are more (less) likely to pay dividends and tend to have larger … (smaller) dividend payouts. Although high long-term institutional holdings also lead to more and larger repurchases, long …

, greater long-term investor ownership is associated with more investment, more equity financing, and less payouts to …

investor “rationality,” the relation must be “explained” by a risk (factor) model. The investment approach questions the … approximations of firm-level investment returns. The evidence that characteristics dominate covariances in horse races does not …” expected returns; the investment approach is no more and no less “causal” than the consumption approach in “explaining …

investor “rationality,” the relation must be “explained” by a risk (factor) model. The investment approach questions the … approximations of firm-level investment returns. The evidence that characteristics dominate covariances in horse races does not …” expected returns; the investment approach is no more and no less “causal” than the consumption approach in “explaining …

liquidity (the storage view). However, compared to excess cash, marketable securities have more in common with investment and … payout. For firms with repatriation tax exposure, constrained to a limited payout and permanent foreign real-investment plans …, the average coefficient difference between excess cash and market investment regressions is zero. For all firms, the …

We derive and test q-theory implications for cross-sectional stock returns. Under constant returns to scale, stock … returns equal levered investment returns, which are tied directly to firm characteristics. When we use GMM to match average … levered investment returns to average observed stock returns, the model captures the average stock returns of portfolios …

We derive and test q-theory implications for cross-sectional stock returns. Under constant returns to scale, stock … returns equal levered investment returns, which are tied directly to firm characteristics. When we use GMM to match average … levered investment returns to average observed stock returns, the model captures the average stock returns of portfolios …