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 …

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 …

pay back debt. In the long run, the allocation of undistributed cash to investment, retained earnings, and debt repayment …

our model, we find that the relation between debt enforcement and firms' investment and risk depends on the firm …-specific probability of default. A difference-in-differences analysis of firms' investment and risk taking in response to bankruptcy …

This paper analyzes whether the financial distress of a firm affects the investment decisions of non … the industry and hence restricting credit access and investment. These average negative effects continue to hold in the …

We show that credit supply shocks have a strong impact on firm-level as well as aggregate investment by applying the … are found to impair firm-level investment in all firms in our sample, but in particular for small firms and those with no … 20–40% of aggregate investment dynamics. …

Firm-level investment paths are commonly characterised by periods of low or zero investment punctuated by large … investment ‘spikes’. We document that such spikes are important for understanding firm and aggregate level investment in the UK …. We show that annual variation in aggregate investment is driven by variation in the number of firms undertaking investment …

investment methods, and reallocation policies in internal capital markets. CFOs see the main financial benefits of being …

We show that firms’ debt maturity structure plays an important role in investment above and beyond that of leverage … invest more and prefer to use long-term debt to free up funds for future investment. This mechanism is supported by the data …. Our findings highlight the importance of debt maturity structure in understanding corporate investment decisions …