Investment characteristics and the form of external financing are linked. Factor analysis indicates that the principal … determinant of the financing choice is whether an investment's payoffs can be described as a hit or miss. Hit-or-miss investments … are more likely to be equity financed. Equity also becomes more common the longer the time until an investment produces …

' investment, growth and financial constraints. Combining propensity score matching with a difference-in-differences estimator, our …

We examine the neoclassical investment model using a panel of U.S. manufacturing firms. The standard model with no … for firms with low (pre-sample) payouts (firms we expect to face financing constraints). Hem, investment is sensitive to … both firm cash flow and macroeconomic credit conditions, holding constant investment opportunities. Sample splits based on …

We examine how firm and country heterogeneity shape the response of corporate investment in emerging markets to changes … the costs of external borrowing and (ii) a real options channel-reflecting firms' option values to delay investment. We … find evidence of the coexistence of both channels. Financially weaker firms reduce investment by more in response to higher …