In this paper, we investigate the damage to real-sector investment spending and corporate financing activities … triggered by the failure of three major investment banks during the 2007-09 financial crisis. We find that firms characterized … by pre-crisis corporate investment banking relationships with troubled investment banks exhibit significantly lower post …

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 …

We examine firms' simultaneous choice of investment, debt financing and liquidity in a large sample of US corporates … affect the corporate decisions of unconstrained firms more strongly than those of constrained firms. Investment-cash flow … sensitivities are particularly intense for unconstrained firms with high hedging needs. Investment opportunities (as proxied by Q …