Purpose: The purpose of this paper is to examine the impact of managerial optimism on corporate investment regarding … often overconfident an effort is made to highlight the effect of this psychological bias on managerial investment decision … – making. Design/methodology/approach: The research methodology is based on the approach that the investment-cash flow …

towards banks contracts the amount and maturity of corporate debt and leads firms to slow investment and forego growth …

gap is reliably and positively associated with firm performance and risk and with the riskiness of investment and …

Distortions in capital markets can create financial constraints that deter firms from pursuing optimal investment plans …. This paper explores how much these constraints affect investment by ownership type in China, using a panel data model … face greater financial constraints than state-owned enterprises (SOEs), as POE investment plans depend more on the …

We develop a dynamic model of corporate investment and financing decisions in which corporate insiders have superior … asymmetric information induces firms with good prospects to speed up investment, leading to a significant erosion of the option … hierarchy or pecking order over securities. Finally, we generate a rich set of testable implications relating firms' investment …