dynamic investment when the manager is compensated with cash salary, stock and option. We then focus on investigating the … dissimilar impact of stock and option compensations on the intertwined corporate investment dynamics and the capital structure … corporate investment. Increasing stock compensation monotonically incentivizes firms to use a higher leverage, whereas an …

across different book-to-market portfolios, using a model of firm financing and investment. The model shows analytically that … tax-deductibility of interest payments increases effective investment irreversibility and that investment irreversibility … leverage or investment irreversibility alone cannot generate the cross-sectional stock return patterns, and that market …

investment decision. Second, pecking order theory is superior to agency theory in explaining the managerial behavior in making …This paper analyzes interdependence of three financial policies, investment decision, financing decision, and dividend … follows. First, there is partially interdependence of financial policies. Investment decision positively influences financing …

We estimate a dynamic investment model in which firms finance with equity, cash, or debt. Misvaluation affects equity … activities come from investment, dividends, or net cash. The model fits a broad set of data moments in large heterogeneous … than investment. The investment responses are strongest for small firms but nonetheless modest. Managers' rational …

We find that corporate giving represents a private benefit of control that distorts corporate investment and financing … activity, consistent with free cash flow agency theory. Corporate giving discourages managers from pursuing external financing …, corporate charitable contributions fall, while investment rises, suggesting suboptimal investment caused by managerial private …

-pronged approach to investigate the relationship between corporate leverage and fixed investment spending. The empirical analysis …

investment by 24.3 to 48.5% during the COVID-19 crisis, compared to 19% during the Great Financial Crisis (GFC). Using historical … faced by corporates between investment and leverage. It also suggests that, should the estimated gap in net revenues … materialise as the result of the crisis, the decline in corporate investment would likely be within the computed ranges. …

We examine the interaction between investment and financing policies in a dynamic model for a firm with existing assets …-in-place and a growth option, of which investment cost is financed with equity and contingent convertible bond (CoCo). We attempt … to clarify how CoCo impacts on investment timing, capital structure and the inefficiencies arising from debt overhang and …