I devise a novel way of linking the neoclassical theory and the q-theory of investment that does away with the need to impute variables from noisy market signals and directly uses the cross-section of observable and relatively more precisely measurable firm characteristics. I show that for a...

The study investigates the role of financial development in boosting the investment efficiency of firms' investments in China. Using a large sample of firm-level financial data and country level economic data over the period 2004-2015, present study creates a link between financial and real...