's q theory of investment. As Tobin has explained, aggregate investment can be expected to depend in a stable way on q, the … return on physical capital raise its market value and cause increased investment until equilibrium is restored. Although … models linking the stock market to investment have been estimated, they have not previously been used to examine the impact …

's q theory of investment. As Tobin has explained, aggregate investment can be expected to depend in a stable way on q, the … return on physical capital raise its market value and cause increased investment until equilibrium is restored. Although … models linking the stock market to investment have been estimated, they have not previously been used to examine the impact …

We contribute to the empirical literature on the relationship between corporate taxes and investment. We exploit the … capital spending of Belgian corporations, we focus on the indirect effect of taxes on investment via their impact on free cash …-flow. We use the systematic variation of the cash-flow sensitivity of investment between small and medium versus large firms to …