. Adjustment and agency costs are included in the neoclassical theory of optimal financial and investment decisions for firms. In …The importance of credit market imperfections for investment behavior is analyzed using Swedish firm level data … the light of the theory of imperfect information. The econometric results indicate that investments are a¤ected by both …

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 …

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 …