We show that firms’ debt maturity structure plays an important role in investment above and beyond that of leverage … invest more and prefer to use long-term debt to free up funds for future investment. This mechanism is supported by the data …. Our findings highlight the importance of debt maturity structure in understanding corporate investment decisions …

This paper studies the effects of changes in uncertainty on optimal leverage and investment in a dynamic firm … the larger shocks. Initially deleveraging leads to a drop in investment. Investment recovers as entrepreneurs build up net … optimal leverage and investment dynamics. Financial innovation amplifies the effects of uncertainty shocks …

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 …

We propose a structural model with an optimal switching of diffusion regime which integrates a wide range of investment … spreads of junk bonds decrease up to 10% unless the agency problem gets extremely severe, and those of investment grade bonds …

We study the interaction between financing and investment decisions in a dynamic model where the firm has multiple debt … issues and equityholders choose the timing of investment. Jointly optimal capital and priority structures can virtually … eliminate investment distortions, because debt priority serves as a dynamically optimal contract. Examining the relative …

We study the effects of uncertainty on corporate leverage adjustments with respect to investment spikes and find that … overlevered and underlevered firms behave very differently in response to the combination of uncertainty and investment spikes …

dynamic investment when the manager is compensated with cash salary, stock and option. We then focus on investigating the … dissimilar impact of stock and option compensations on the intertwined corporate investment dynamics and the capital structure … corporate investment. Increasing stock compensation monotonically incentivizes firms to use a higher leverage, whereas an …

We study the effects of monetary-policy-induced changes in Tobin's q on corporate investment and capital structure. We … develop a theory of the mechanism, provide empirical evidence, evaluate the ability of the quantitative theory to match the … evidence, and quantify the relevance for monetary transmission to aggregate investment …

understanding of Belgian firms' investment behavior. Two main and interrelated topics are investigated: the link between financial … structure and investment decision, on the one hand, the effect of uncertainty on the level of investment, on the other hand … are more sensitive to interest rate and cash flow. However, no role for investment price volatility is observed. …