We analyse the effects of investment decisions and firms internal organisation on the efficiency and stability of …. We show that often stable mergers do not lead to more e.ciency and may even lead to efficiency losses. These mergers lead … to lower total welfare, suggesting that a regulator should be careful in assuming that possible efficiency gains of a …

We develop a dynamic model of trading and investment with limited aggregate resources to study investment cycles …. Unverifiable idiosyncratic investment opportunities imply market prices to play a role of rent distribution, distorting private … investment incentives from a social point of view. This distortion is price-dependent, leading to two-sided inefficient …

We investigate the impact of employee treatment on labor investment efficiency. We provide evidence that employee … fundamentals, i.e., higher labor investment efficiency. The effect of employee treatment on labor investment efficiency is stronger …-in-difference method, we also show that employee-friendly firms have higher labor investment efficiency in the post-financial crisis period …

be welfare-improving. We find that imposing a penalty helps to improve investment efficiency, but it also brings a … greatest degree, as the benefit from reducing the investment inefficiency outweighs the expected deadweight cost. Otherwise, it …