between leverage and changes in investment and production when firms face a sudden change in their investment opportunity sets … leveraged oil producers reduce investment and increase production to generate cash flow to make their debt payments after the …

environment best, determining the impact of asset sales on investment for financially constrained firms and finally determining … the impact of investment and asset sales on firm' performance. Analysis is performed on 223 financially healthy firms for … evidence that financial constraints have a significant impact on investment. It therefore, accepts the hypothesis that sales …

Abstract We study the classical relationship between a firm’s investment and Tobin’s q for which unobserved … significant factor of investment even after controlling for the productivity and that investment becomes less sensitive to q and …

We study a firm's optimal investment timing and capacity decisions in the presence of uncertain time-to-build. Because … the follow-up investment can be shorter than those of the initial project due to learning by doing. We derive the optimal … investment strategies in each scenario and examine the impact of time-to-build on the investment dynamics. We show that both the …

This paper develops and estimates a model of firm-level fixed capital investment when firms face borrowing constraints …. Dynamically optimal investment functions are derived for the firms with and without financial constraints. These policy functions … are then used to construct the likelihood of observing each of the investment regimes in the data. Structural parameters …

We document that 20% of Compustat firms have above-median investment rates despite having below-median marginal product … features of the cross-section of firms and allows for counterfactual analysis. Hypothetical firm investment policies that … ignore the potential for future jumps reduce MPK and investment dispersion but also lower aggregate productivity …

investment decision and output dynamics based on real options framework. In particular, we introduce different levels of labor … flexibility and examine how it affects the firm's investment and employment strategy. We show that upward-only adjustable labor …, which can arise from employment protection, discourages investment and makes a negative short-run impact on labor employment …

This paper describes firms output and factor demands before, during, and after episodes of lumpy investment. By using a …. Investment spikes are followed by roughly proportional changes in sales, labour, and materials, and significant increases in … capital intensity. The changes in labour productivity that are associated with the investment spikes are small, which …