traders to arbitrageurs? We study firm business investment to address this question. In our model, benevolent managers of … with positive net present value. Empirically, we find a positive relation between investment and a number of proxies for … mispricing, controlling for investment opportunities and financial slack, suggesting that overpriced (underpriced) firms tend to …

Which investment model best fits firm-level data? To answer this question we estimate alternative models using … implication, that Q is a sufficient statistic for determining a firm's investment decision, has been often rejected because cash …-flow and lagged-investment effects are present in investment regressions. However, we find that these regression results are …

We provide theoretical and empirical evidence that policy uncertainty can significantly affect firm level investment … dynamic, heterogeneous firms model we show that: (i) investment and entry into export markets is reduced when trade policy is … theory-based measure of policy uncertainty. Our novel approach using observable trade policies allows us to estimate the …

Firms expect certain investment expenditures. Firms realize certain investment expenditures. The difference is an … investment surprise. With the help of the IFO Investment Survey for the German manufacturing sector we measure firms …’ (quantitative) investment expectations and firms’ (quantitative) investment realizations on a yearly basis and construct a panel of …

the US. Their work suggests private sector expenditure (investment) on intangibles is about 13% (11%) of US GDP 1998 …-2000, with intangible investment about equal to tangible capital investment. Our work, using a similar method, suggests the UK … private sector spent, in 2004, about £127bn on intangibles, which is about 11% of UK GDP. The implied investment figure is …

This Paper investigates the empirical relationship between uncertainty and investment dynamics. This is motivated by … the real options literature, which suggests a weaker response of investment to demand shocks at higher levels of … can be detected as a smaller impact of sales growth on investment for firms facing higher uncertainty. Using a stock …

’ because the tax liability is offset by a reduction in the post-tax risk of the investment. The Paper argues that this claim is … investment incentives in the presence of risk. Instead it proposes an alternative measure, based on the market value of the pre …