Purpose: The purpose of this paper is to examine the impact of managerial optimism on corporate investment regarding … often overconfident an effort is made to highlight the effect of this psychological bias on managerial investment decision … – making. Design/methodology/approach: The research methodology is based on the approach that the investment-cash flow …

analysis further identifies sources of financing in these subsectors and discusses future investment and financing challenges …

We assess the impact of credit constraints on investment, inventories and other working capital and firm growth with a …, as firms with poor investment and growth opportunities may have a higher probability of being credit constrained. We … implement several strategies to overcome this obstacle: proxies for investment opportunities, lagged regressors, random effects …

pay back debt. In the long run, the allocation of undistributed cash to investment, retained earnings, and debt repayment …

This paper investigates the impacts of board's corruption culture on the financing costs of firms. Evidence shows that … corruption culture in their boards. The results are robust to controlling for the endogenous matching between firms and boards … using a variety of econometric techniques. We further document that the effect of the board's corruption becomes stronger …

Using the recent anti-corruption cases in China as a natural experiment, this study documents that connections with the … removed in an anti-corruption case. However, after the event, their M&A activities decrease significantly, post …

officials' corruption investigations, we find that, on average, investors do not realize that officials under investigation are …

We provide a novel empirical finding that the recent anti-corruption investigations in China are associated with credit … political connection channel, through which the anti-corruption campaign leads to improved credit reallocation …

Using political corruption conviction data from the U.S. Department of Justice, we examine the impact of local … corruption on firms’ debt maturity structure while exploring both demand-side and supply-side explanations. Our results support … the demand-side story and indicate that firms located in high corruption areas utilize less short-term debt to mitigate …