The aim of this paper is to investigate the issue of R&D investment and the market value of the firm. This idea dating … R&D investment). In the theoretical section of this paper we are describing Tobin's original model, and Abel's (1984 …-section time series model (Feasible Generalized Least Squares Model), for a panel of countries in Europe including UK and Turkey …

Firms reduce investment when facing downward wage rigidity (DWR), the inability or unwillingness to adjust wages … DWR to document this fact. Following a one standard deviation increase in the minimum wage, firms reduce their investment … investment cut is larger than the benefit of the wage increase. This investment cut cannot be fully explained by labor adjustment …

In this paper we describe a theoretical model of optimal investment of various types of financially constrained firms …. We show that the resulting relationship between internal funds and investment is non-monotonic. In particular, the … magnitude of the cash flow sensitivity of the investment is lower for firms with credit rationing compared to firms that are …

The paper studies the interaction between cyclical uncertainty and investment in a stochastic real option framework … of the link between cyclical uncertainty and investment is quantified using simulations of the model. The chief … shows that macroeconomic risk acts as an important deterrent to investments. -- business cycles ; real options ; investment …

firm's capital investment with respect to investment opportunity. As a direct measure for the productivity of banks, we … the past three decades. The panel estimations for an extended investment equation based on Q-theory show, in a … to capital investment opportunities, provided that these firms hold close relationships with a high performance bank …