rates — is determined to equate the world aggregate of investment demand to the world aggregate of desired national saving …

We investigate the impact of managerial investment diversion on a firm's investment paths and the investment …-return relation in a dynamic q-theory model. When efficiency of investment is not observed by shareholders, the manager may divert … investment for private benefits. An agency investment friction emerges from the cost associated with high-powered managerial …

In a multiperiod investment framework, firms with high expected growth earn higher expected returns than firms with low … expected growth, holding investment and expected profitability constant. This paper forms cross-sectional growth forecasts, and …

inconsistent with the findings of Stowe and Xing (2011). Moreover, this research shows that the investment decisions are likely to …

inconsistent with predictions of the q-theory of investment …

. We further show that profitability premium is stronger among firms with low investment frictions, consistent with the … implications of investment-based q-theoretical asset pricing models. However, it is not stronger among firms with high limits to …