as a response to previous physical capital investment with an ultimate goal of inducing higher rates. Theoretical models …) and gross investment (INV) in physical capital. The evidence accruing from a dynamic panel data estimation indicates an … with the notion that the size of the firmś investment project can impose a restriction on the amount of new debt. The …

relationship with its workforce. The paper shows that investments into physical productive assets enhance the enforceability of … relational contracts and hence investments optimally are "too high". …

heterogeneous tax sensitivity of firm-level investments across firm types. We econometrically test the theoretical predictions … investment of small entrepreneurial and larger managerial firms in different financial regimes that are largely in line with …

between shareholders and managers. The present paper shows that over-investments are not necessarily the (negative …, and if it faces a volatile environment, investments into general, non-relationship-specific, capital can increase the …

We build a model of investment and financing decisions to study the choice between bonds and bank loans in a firm …'s marginal financing decision and its effects on corporate investment. We show that firms with more growth options, higher … investment. We test these predictions using a sample of U.S. firms and present new evidence that supports our theory …