The relationship between foreign capital flows and productivity is still puzzling. We extend the literature on the effect of foreign private capital flows on productivity growth by investigating the effects of the flows across heterogeneous recipient sectors, using a unique hand-collected...

We identify a novel concept of discretionary idiosyncratic volatility proxied by the idiosyncratic volatility component not related to the non-systematic industry volatility as a source of agency problems that have implications for firms’ cash holdings and their investment decisions. We find...