portfolios and investment frictions generate a mean-reverting dynamics of Tobin's q consistent with the probabilities of …

This paper examines to what extent stock market anomalies are driven by firm fundamentals in an investment-based asset … anomaly. The estimated model generates large and significant size, momentum, profitability, investment, and intangibles …

through market-timing and catering, after controlling for growth and financial slack. This investment-mispricing link is more … sensitivity of investments to mispricing is a function of the nature of mispricing, the type of investment, and the firm …

quantitatively. Our central insight is that optimal investment is an important driving force of these anomalies. The model … simultaneously reproduces procyclical equity issuance waves, the negative relation between investment and average returns, long …

behavior. In particular, we ask whether and how strongly investment decisions of firms respond to stringency in environmental … estimate the differential impact of environmental stringency on four types of investment: gross investment in tangible goods …, in new buildings, in machinery, and in `productive' investment (investment in tangible goods minus investment in …

performance on financial performance. Our estimation results can be explained by the high number of confounding financial effects …

The link between investment and finance usually enters the empirical literature in the form of financial constraints … credit market. In this context, the sensitivity of investment with respect to single internal or external finance indicators … resulting empirical investment function includes the probability of survival as an additional explanatory variable. This …

?s Investment Tests (IT) during the years 1988-1998, we create a panel with information on investment, innovation activity and … financing conditions. Financial constraints affect the distribution of investment over time in a fundamental way. Following a … on Schworm?s (1980) model of optimal investment under financial constraints, we use it to test the empirical content of …

relationship between investment activity and financial constraints is theoretically ambivalent due to simultaneity, the link … take longer to close capacity gaps. This indicates that financial constraints do indeed play a part in the investment …