The study investigates the role of financial development in boosting the investment efficiency of firms' investments in … China. Using a large sample of firm-level financial data and country level economic data over the period 2004-2015, present … concludes that firms suffering from under- (over-) investment problem due to financing constraints (agency problem), are more …

Investment cash flow sensitivity constitutes one important block of the corporate financial literature. While it is … the investment cash flow sensitivity among panel data of American industrial firms during 1999-2010. Using Q-model of … investment (Tobin, 1969), we construct and introduce a proxy of managerial optimism following Malmendier and Tate (2005a) to show …