Does increasing inflation affect firms' investment decisions? This article employs the European Investment Bank … Investment Survey (EIBIS) dataset to explore the association between the increased inflation that the EU countries have … experienced since 2021, and firms' investment decisions. We find evidence that very high rates of inflation (over 20%) are …

I develop a dynamic model of investment timing in which firms must first choose when to search for external financing …. Search is costly and the arrival of investors is uncertain, leading to delay in financing and investment. Depending on … parameters, my model can predict simultaneous financing and investment or early financing prior to investment. Additionally, the …

We show how directors can set the strength of a firm's anti-takeover provisions in order to influence the investment …

Firms reduce investment when facing downward wage rigidity (DWR), the inability or unwillingness to adjust wages … DWR to document this fact. Following a one standard deviation increase in the minimum wage, firms reduce their investment … investment cut is larger than the benefit of the wage increase. This investment cut cannot be fully explained by labor adjustment …

study, I examine how introducing a time delay into the execution of an investment plan influences individuals' risk … outset, in the Decision Stage (Stage 1), each subject was asked to make an investment plan by splitting a monetary investment … amount between a risky asset and a safe asset. Subjects were informed that the investment plans they made in the Decision …

We report laboratory experiments investigating the cyclicality of profit-enhancing investment in a competitive … environment. In our setting, optimal investment is counter-cyclical when investment costs fall following market downturns. However …, we do not observe counter-cyclical investment. Instead we see much less strategic behavior than our rational investment …

This paper investigates whether network effects on investment exist and whether firms strategically herd their … common board member and estimate network effects on firms' investment decisions. Our identification strategy to resolve the … confirm significant network effects on firms' investment and show that firms strategically follow their connected firms with …

investment. Firms anticipate information spillover from peers’ investment decisions and delay project exercise to learn from … skilled. Finally, our results suggest that the anticipation of peer information dampens aggregate investment …

This study investigates if financial constraints reduce investment among private and small firms using a rich, census … of investment to changes in cash flow and the marginal product of capital among plants with different size and ownership … status. The analysis reveals that cash flow has greater effect on investment among small plants, whereas the effect of the …