The interpretation of the correlation between cash flow and investment is highly controversial. Some argue that it is … caused by financial constraints, others by the correlation between cash flow and investment opportunities that are not … opportunities available only to insiders and thus not included in Q. When this variable is added in investment regressions, the …

There is growing interest in economic uncertainty and its long run impact on investment. In previous work the authors … established clear evidence of the negative impact of exchange rate uncertainty on investment in the G7, measured using a GARCH … approach, and Pooled Mean Group Panel Estimation. In this paper we assess the impact on investment of temporary and permanent …

machinery investment in the second half of the 1990s. We extend previous US research by Tevlin and Whelan (2002) by explaining …-level equations can explain the UK investment boom over this period, whereas the aggregate equation completely fails. …

From neoclassical theory output, capital stock and the user cost are cointegrated; capital and investment also (multi …)cointegrate through the capital accumulation identity. An investment equation is estimated on UK data using a new capital stock series and … specifications, but single-equation investment relationships may obscure the dynamics. The Johansen method is over-sized, but …

Evidence that cash flow has a significant effect on investment after controlling for Tobin's average Q has been …

Investment in information acquisition can be used strategically by banks as a commitment device to augment market power …

the entire industry. We show that firms' investment incentives are largest under complete centralisation. However …, investment incentives are non-monotone in the degree of centralisation so that "decentralization" carries higher investment …