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 aims to determine factors causing the stagnation of Korean firms' fixed investment after the global … financial crisis, using panel data for the period of 1999-2016. Fixed investment remained sensitive to cash flow and Tobin's q …'s q since the early 2000's imply that the worsening cash flow was a major factor behind the sluggish investment after the …

We analyse the developments of investment and investment financing in Italy since 1995, based on data from national … accounts and the flow of funds. The exceptional fall in investment after the global financial crisis in 2007 concerned all … intangible investment instead weathered the double recession better. Focusing on investment financing, the eruption of the crisis …

This paper investigates the link between corporate debt and investment for a group of five peripheral euro area … countries. Using firm-level data from 2005-2014, we postulate a non-linear corporate leverage-investment relationship and derive … thresholds beyond which leverage has a negative and significant impact on investment. The investment sensitivity of debt …

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 document that intangible investment responds less to monetary policy compared to tangible investment. Likewise …, monetary policy has a smaller effect on the total investment and stock prices of firms with more intangible assets. This novel …

investment by 24.3 to 48.5% during the COVID-19 crisis, compared to 19% during the Great Financial Crisis (GFC). Using historical … faced by corporates between investment and leverage. It also suggests that, should the estimated gap in net revenues … materialise as the result of the crisis, the decline in corporate investment would likely be within the computed ranges. …

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 …

We examine the relationship between real exchange rate fluctuations and firm-level investment and growth using data for … real depreciations boost profits, investment, and asset growth of tradable sector firms that have higher labor shares and … depreciations boost profits by reducing real product wages, spurring investment of labor-intensive but financially-constrained firms …

investor “rationality,” the relation must be “explained” by a risk (factor) model. The investment approach questions the … approximations of firm-level investment returns. The evidence that characteristics dominate covariances in horse races does not …” expected returns; the investment approach is no more and no less “causal” than the consumption approach in “explaining …