Discounted-cash-flow (DCF) techniques form the basis of most corporate-investment decisions. Many practitioners, however, claim to be dissatisfied with traditional methods of appraisal. In this paper, we survey DCF and more recent methods of evaluating cyclical projects.

This paper studies the influence of debt financing on the investment behavior of firms. The empirical analysis is based on the Euler equation governing the optimal level of investment in the presence of convex adjustment costs of capital as well as agency costs associated with borrowing in...

We present a unified theoretical framework capable to address the main real capital decision problems. Initially we specify a continous-time, terminal-horizon real capital model and use it to trace the properties of optimal utilisation, maintenance, and expansionary investment policies, as well...

This paper provides a theory of venture capital financing based on the complementarity between the financing and advising roles of venture capitalists. We examine the interaction between the staging of investment, that characterizes young firms with a high growth potential, and the double-sided...

This paper studies the impact of the financial and economic liberalization in Tunisia since the mid-1980s on the financial structure and behavior of the corporate sector. We analyze the effect of financing constraints, due to market imperfections as well as credit allocation policies, on the...

We construct company panel datasets for manufacturing firms in Belgium , France, Germany and the UK, covering the period 1978-89. These datasets are used to estimate emprirical investment equations, and to investigate the role played by financial factors in each country.

The role of financial institutions and corporate governance in the conduct and performance of industrial firms, especially in the area of technological innovation and international competition has been hotly debated in the recent past. The results presented here are a contribution to the...

We review the changes in modelling strategy and econometric methodology when estimating a firm-level investment equation on panel data during the past twenty years, in order to assess which of these changes result from new estimation methods and changes in the practice of panel data...