In recent decades, the impact of South African foreign direct investment in Africa has been captured by research and policy. This paper investigates linkages and spillover effects of South African foreign direct investment in Botswana and Kenya. The study uses primary data to investigate...

This paper explores the relationship between the ease of doing business, as one of the investment climate indicators, and foreign direct investment (FDI) inflows in Africa. It uses instrumental variable estimation and the control function approach to correct for possible endogeneity between FDI...

In this paper, we use an exogenous variation in tax regulations to analyze the impact of bonus depreciation programs on business investment. To promote economic convergence of Eastern and Western Germany after reunification, bonus depreciation tax incentives were granted for investments in...

Der Beitrag untersucht, inwieweit hinter der oft konstatierten Investitionsschwäche der europäischen Wirtschaft eine Strukturverschiebung von materiellen zu immateriellen Investitionen steht. Da letztere nur zum Teil unter den Investitionsbegriff der Volkswirtschaftlichen Gesamtrechnung...

This article shows that investors financing a portfolio of projects may use the depth of their financial pockets to overcome entrepreneurial incentive problems. Competition for scarce informed capital at the refinancing stage strengthens investors' bargaining positions. And yet, entrepreneurs'...

We analyze the spillover effect of fixed asset investment incentive on firm innovation by estimating the influence of China's value-added tax reform in 2004 with a difference-in-difference-in-differences (DDD) approach. We find that fixed asset investment incentive significantly reduces firm...

Traditional finance theory suggests that riskier investments should yield higher returns. Challenging this notion, anecdotal and empirical evidence suggests that highly-incented managers may take on excessive risk, leading to greater losses, while other theoretical research argues that high...

Using a typical linear model on a sample of listed firms in China over a period of 10 years (2006–2016), this study empirically attempts proving how peer effects influence corporate research and development (R&D) investment decision. The study goes further to demonstrate that peer effects play...

I provide evidence that covenants in bond indentures affect the firm's investment policy outside of covenant violations. Using a large dataset of public bonds, and controlling for the self-selectivity of covenant inclusion, I find that bonds with investment (financing) restrictions are...

We estimate the impact of investment tax credit on firm fixed investment, using China's 2004 value-added tax reform pilot that introduces a permanent 17%-tax credit for fixed investment in six industries in the Northeastern region. The tax credit raises significantly fixed investment of eligible...