The investment literature has long acknowledged the time- and frequency-varying dynamics of the relationship between … investment, Tobin's Q and cash flow. In this paper, we use continuous wavelet tools to estimate and assess the relationship … complementary sources of information for investment, the former being more important for firms' investment decisions in the medium …

While investment in most sectors declines in response to a contractionary monetary policy shock, investment in the …

, by unobserved shocks to participation by informationless traders, and by real investment. The equilibrium relations …

We revisit the empirical performance of the Q theory of investment, explicitly taking into account the frequency … dependence of investment, Tobin's Q, and cash flow. The time series are decomposed into orthogonal components of different … frequencies using wavelet multiresolution analysis. We find that the Q theory fits the data much better than might be expected …

outside the U.S. due to a greater decline of intangible investment and a much slower recovery. Tangible capital can be … investment relies on firms’ liquidity holdings that were drawn down in the crisis and can only be rebuilt gradually through … retained profits. We provide a unified account of the findings through a dynamic model of corporate investment and liquidity …

We investigate how idiosyncratic lender shocks impact corporate investment. Lenders with recent default experience … write stricter loan contracts, leading to a reduction in real investment for borrowing firms. The decline in investment is … evidence suggests that defaults inform lenders about investment opportunities and their screening ability, and adjustments to …

This paper identifies the aggregate financial shocks and quantifies their effects on business investment based on an ….S. public firms' aggregate investment. The negligible aggregate relevance of financial shocks mainly results from the …, financially constrained firms are directly forced to cut investment, which dampens the aggregate investment demand and lowers the …

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 …

competition on firms' investment timing decisions. With a model featuring business-cycle variations in both the profit level and … "subtract" values of the investment option or the invested capital, leading to more cyclical investment than that predicted by … subtrated values, making the investment typically more cyclical in the monopolized industry than in the competitive industry …

The recovery in private business investment globally remains extremely weak more than seven years after the financial … growth prospects and uncertainty in explaining developments in non-residential private business investment in large advanced … economies since the crisis. Augmenting the traditional models of investment with measures of growth expectations for output and …