I examine the effects of entrenchment on corporate investment and firm performance. To achieve identification, I use a … of overseeing investment projects …

setting using investment level data. We find allocative inefficiency across ownership to be exacerbated under policy … more capital in certain markets even after returns on investment are dampened by negative policy shocks, suggesting that …

How do firms finance their investment? To what extent does the financing mix depends on the nature or the size of … investment? To what extent does the funding mix of investment vary along firm size? Relying on a unique database of firms … picture of the financial resources used by firms to finance their investment.We uncover significant cross …

This paper develops a dynamic model of capital structure and investment. In a world with low and high ability managers …, the former mask as the latter, but to do so have to overstate both earnings and investment. Debt is a mechanism that … counterproductive, as it generates costs and no expected payoff. The security design that asymptotically implements optimal investment …

We propose a model of a firm's reversible investment decision with macroeconomic conditions based on optimal switching … business cycle which alternates via a Markov chain, and the investment and disinvestment triggers in each state are determined … endogenously. The cyclical investment which amplifies the macroeconomic shocks is examined, while the disinvestment can be either …

This paper investigates the effect of uncertainty on R&D investment. We find that firms invest more in R&D when they … support the theory of strategic growth option in which firms under competition follow preemptive strategy when they face high …

of shareholder bargaining power on the investment effects of debt overhang. Our empirical tests utilize a new measure of … and dampens (increases) capital investment. We identify novel ownership structure related factors in firm-level capital … investment and document how post-default shareholder bargaining power alleviates the underinvestment problem caused by debt …

We examine the relationship between real exchange rate fluctuations and firm-level investment and growth using data for … real depreciations boost profits, investment, and asset growth of tradable sector firms that have higher labor shares and … depreciations boost profits by reducing real product wages, spurring investment of labor-intensive but financially-constrained firms …

This paper addresses whether adopting good governance standards alleviates constraints on financing investment via … governance has a positive and significant impact on fixed investment. However, my findings indicate that for oligarch-owned firms … their governance might have a more significant effect on their fixed investment. Secondly, the absence of investment …