This paper analyses the implications of corporate indebtedness for investment following large economic shocks. The … suggest that investment of high-debt firms is significantly depressed for an extended period in the aftermath of economic …% higher than that of firms with lower debt burdens. The negative impact of high debt on investment is most evident for firms …

known as intangibles, suggest that their share in overall investment has grown considerably. Still, intangible investment is … rarely present in investment models. In this paper, I extend the q-theory of investment to model explicitly the decision of … movements in the measurement of the contribution of each type of investment to the overall capital stock. In particular, given …

In this paper we study a continuous time, optimal stochastic investment problem under limited resources in a market … with N firms. The investment processes are subject to a time-dependent stochastic constraint. Rather than using a dynamic …)]. -- stochastic irreversible investment ; optimal stopping ; the Bank and El Karoui Representation Theorem ; base capacity ; Lagrange …

Private investment in advanced economies contracted sharply during the most recent financial crisis. Using firm …, contributed to the reduction in investment during the crisis, in particular for small and medium-sized enterprises. The … is most clear in industries in which firms decreased their aggregate investment most during the downturn, and it cannot …

Using Swedish bank lending data, investment data and accounting data, I examine how the financial crisis affected … corporate investment through its effect on credit availability. Sensitivity to a credit supply shock is measured as credit … reserves, defined as unused credit on lines of credit. I find that firms with low credit reserves reduced investment …

investment - results that are consistent with the model's predictions. -- investment ; stock market ; bubble ; dispersion …

Firm-level investment is lumpy and volatile but aggregate investment is much smoother and highly serially correlated …. These different patterns of investment behavior have been viewed as indicating convex adjustment costs at the aggregate … yet at the same time generate lumpiness in plant-level investment. In particular, our model can (i) derive aggregate …

This paper uses the financial crisis of 2008 as a natural experiment to demonstrate that when measuring investment … investment-cash flow sensitivity, which decreased substantially after the crisis when banks changed their expectations about the … value of assets on firms' balance sheets. This paper deepens our understanding of firms' investment behavior …

investor “rationality,” the relation must be “explained” by a risk (factor) model. The investment approach questions the … approximations of firm-level investment returns. The evidence that characteristics dominate covariances in horse races does not …” expected returns; the investment approach is no more and no less “causal” than the consumption approach in “explaining …