We study how interest alignment between CEOs and corporate boards influences investment efficiency and identify a novel … force behind the benefit of misaligned preferences. Our model entails a CEO who encounters a project, gathers investment …

find that during periods of import tariff cuts and the global financial crisis, investment and firm value are higher for …

examines the impact of utilizing financial derivative instruments on corporate investment. We document that engaging in … borrowing. Although financial hedging serves as a vehicle for firms to bring their inorganic investment plans to fruition by … facilitating their financing, it also leads to inferior investment choices when conflicts of interest among managers and …

A simple contracting environment with a creditor who has wealth and a entrepreneur who has a two-period investment …

Does corporate governance affect the timing of large investment projects? Hazard model estimates suggest strong … shareholder governance may deter managers from pursuing large investments. Controlling for investment opportunities, firms with … strong CEO incentives (high delta (δ)) we find no such timing differences. Finally, these higher investment hazard firms …

We study how interest alignment between CEOs and corporate boards affects investment efficiency. The model entails a … CEO who encounters an investment project and decides either or not to present it for approval to a board of directors. The … CEO may need to collect and report investment-relevant information because the project is novel in the sense that it …

We examine firms' simultaneous choice of investment, debt financing and liquidity in a large sample of US corporates … affect the corporate decisions of unconstrained firms more strongly than those of constrained firms. Investment-cash flow … sensitivities are particularly intense for unconstrained firms with high hedging needs. Investment opportunities (as proxied by Q …

pay back debt. In the long run, the allocation of undistributed cash to investment, retained earnings, and debt repayment …

The accuracy of firm information disclosures and the efficiency of long-term investment both play crucial roles in the … managers confront realistic incentives to misreport financial statements and distort their real investment choices. Managers in … this misreporting through disclosure regulation is possible, it incentivizes managers to distort real investment, which …

Using a novel pairwise measure of firms' acquisition of rivals' disclosures, we show that investment opportunities … their products. Our results suggest that rivals' public information, far from being unusable, helps facilitate investment … mechanism that could partly underlie the emerging literature on peer investment effects …