This paper tests for the importance of cash flow on investment in fixed capital and R&D using firm-level panel data in … investment or R&D. In identical specifications for British firms, cash flow is informative about investment, although not about … the level of R&D spending conditional on the R&D participation decision. In the UK, we also find that investment is less …

This paper uses a new data-set to examine how internal capital markets and foreign ownership affect investment. Our … data allow us to compare investment behaviour of listed subsidiaries with stand-alone firms while controlling for … investment opportunities of parent and subsidiary firms. We evaluate how the size of ownership and the geographical proximity of …

This paper investigates the relationship between infation uncertainty and investment using a panel of loan-level data … investment. Moreover, there is a shift in the composition of investment away from fixed assets and towards working capital - the … more flexible factor of production - and fixed asset investment exhibits periods of inaction consistent with real option …

investment. Uncertainty increases real option values making firms more cautious when investing or disinvesting. This is confirmed … both numerically for a model with a rich mix of adjustment costs, time-varying uncertainty, and aggregation over investment … investment response to demand shocks. This implies the responsiveness of firms to any given policy stimulus may be much lower in …

This article estimates the effect of visa restrictions on bilateral trade flows and foreign direct investment (FDI …

employment, investment and productivity, and a moderate loss in GDP. This temporary impact of a second moment shock is different …. The parameterized model is then used to simulate a macro uncertainty shock, which produces a rapid drop and rebound in … from the typically persistent impact of a first moment shock, highlighting the importance for policymakers of identifying …

This paper analyses a dynamic game of investment in R&D or advertising, where current investments change future market … conditions. It investigates whether underinvestment can be supported in equilibrium by the threat of escalation in investment … investment in equilibrium. Furthermore, potential entry is introduced into the model so as to address the issues of market …