We study how interest alignment between CEOs and corporate boards influences investment efficiency and identify a novel … force behind the benefit of misaligned preferences. Our model entails a CEO who encounters a project, gathers investment …

dynamically optimize over consumption, investment in capital, and investment in information. The model predicts that investors … financial sector, such as the sources of variation in returns on information acquisition for investment banks or private equity …

how communication mitigates this free-riding problem in an investment-timing game. In our baseline investment-timing game … investor of the group bears the costs of investment while everyone in the group benefits if the project reveals high returns … communicate before choosing the investment time. We find that in groups of two players, communication increases cooperation and …

investment timings. Players choose when to invest in a nonrival project with uncertain returns. The earliest investor bears the … costs of investment and all players learn whether the project is of good or bad quality. Informational externalities create … free-riding incentives resulting in strategic delays in investment timings. Our theoretical analysis suggests that …

I develop a dynamic model of investment timing in which firms must first choose when to search for external financing …. Search is costly and the arrival of investors is uncertain, leading to delay in financing and investment. Depending on … parameters, my model can predict simultaneous financing and investment or early financing prior to investment. Additionally, the …

Corporate investment decisions require managers to forecast expected future cash flows from potential investments … infer the quality of their corporate investment decisions. Relying on the intuition that managers draw on similar skills … when generating external earnings forecasts and internal payoff forecasts for their investment decisions, we predict that …

Using a novel pairwise measure of firms' acquisition of rivals' disclosures, we show that investment opportunities … their products. Our results suggest that rivals' public information, far from being unusable, helps facilitate investment … mechanism that could partly underlie the emerging literature on peer investment effects …