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We find that motivated monitoring by institutional investors mitigates firm investment inefficiency, estimated by … type. We also show that closer monitoring mitigates the problem of both over-investing free cash flows and under-investment …
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This paper argues that there are several factors that investors must take into account when choosing to invest or not. One of the most important factors, which goes largely undiscussed in existing literature, is the behavior of governments undergoing political reform. Specifically, the...
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This paper investigates the relation between corporate political connections and government investment. We study … unconnected firms. Overall, we show that connections between firms and regulators are associated with distortions in investment …
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