Firms reduce investment when facing downward wage rigidity (DWR), the inability or unwillingness to adjust wages … DWR to document this fact. Following a one standard deviation increase in the minimum wage, firms reduce their investment … investment cut is larger than the benefit of the wage increase. This investment cut cannot be fully explained by labor adjustment …

Portfolio diversification of firms' controlling owners influences their firms' capital investment. Empirically, the … effect of owners' portfolio diversification on their firms' investment levels is positive for publicly-traded firms and tends …-averse investor simultaneously chooses her portfolio structure, and the level and riskiness of capital investment of the firm she …

ownership and capital demand adjustment in host countries. The author estimates a dynamic structural model of investment on a …

We assess the impact of credit constraints on investment, inventories and other working capital and firm growth with a …, as firms with poor investment and growth opportunities may have a higher probability of being credit constrained. We … implement several strategies to overcome this obstacle: proxies for investment opportunities, lagged regressors, random effects …

We investigate the role of financialization in the decline of investment for U.S. non-financial firms from 1992 - 2017 … to divert resources from real investment to share repurchases to increase stock prices. Using micro-data from U.S. firms … repurchases on capital investment; (ii) to examine the interaction between stock-based CEO pay and the likelihood of share …

, uncertainty reduces corporate investment and employment. Using a novel firm-level measure of cash flow uncertainty, we find … empirically that uncertainty has a strong negative impact on corporate employment and investment in both tangible and intangible …, investment in tangibles would increase by 1.54%, and investment in intangibles would increase by1.29%. Our findings are robust to …

substantially while their investment opportunities decline and, to prevent retrenchment, managements need to invest in negative net …

substantially while their investment opportunities decline and, to prevent retrenchment, managements need to invest in negative net …

ownership and capital demand adjustment in host countries. The author estimates a dynamic structural model of investment on a …

This article tests the hypothesis that financial supply-side shifts help to explain the low-investment climate of …