We study the real effects of credit market sentiment on corporate investment and financing for a comprehensive panel of … correlates with high corporate investment and debt issuance in year t+1, particularly for financially constrained firms. In the … a decline in corporate investment in years t + 4 and t + 5. This pattern of increased investment in the short term and …

persistent decline in investment. Moreover, the territorial dispute has led to persistent pessimism in these firms' expectations …How do real-time expectations affect firms' economic decisions? We provide evidence by using a dataset on Japanese … about future sales, which can explain 60% of the overall decline in investment. …