Aggregate business investment is a major driver of long-term economic growth. It has been weak in many advanced economies over the last decade, partly due to cyclical demand-side effects. Nevertheless, a number of structural factors and policies interact with and have an effect on business...

The current study aims to explore the role of various macroeconomic factors in determining corporate investment. Using firm-level data of six Gulf Cooperation Council (GCC) region countries for a 14 year period (2007-2020), the current study establishes the empirical analysis by employing the...

How should firms be incentivized to adopt new technologies when the technical merits and spillovers of such technologies are uncertain? We show that, when information is dispersed but exogenous, efficiency can be induced with simple (constant) subsidies. When, instead, firms must also be...

While climate change has long called for a green shift in our economies, the current energy crisis leads to an increased urgency when it comes to transforming the energy and transportation systems. The Recovery and Resilience Facility (RRF), which was adopted to support recovery from the...

The aim of this paper is to ascertain corporate investment reaction in bank-dependent companies in times of crisis. Our investigation covers the differences in corporate investment reaction due to the global financial crisis (GFC) of 2007-2009 and the COVID-19 crisis of 2020–2021. We utilized...

This paper examines the effect of economic policy uncertainty (EPU) on firm-level investment and corporate financial leverage. The panel data of 1072 firms traded on the New York Stock Exchange (NYSE), New York Stock Exchange Market (NYSE MKT) (formerly known as American Stock Exchange-AMEX), or...

Investment climate is one of the factors associated with explaining differences in productivity among firms. This study examines the relationship between firm productivity and a subgroup of investment climate variables, namely access to finance, regulatory environment, and infrastructure by...

The dual nature of property as both a consumption and an investment good makes itdifficult for households to decide how much capital to allocate to it. In fact, the theoreticalliterature predicts a constraint imposed by property on investment and the empiricalliterature has brought evidence that...

Starting with the year of 2020 pandemic, the world has entered a testing period for the economy (Nicola et al., 2020). It has been three years since the Covid-19 began, and the misalignment of the timing of the pandemic and its spread (Kuckertz et al., 2020), combined with the misalignment of...

The Chinese state owned enterprise (CSOE) presents an anomaly in the operation of the well-ordered construction of a self-referencing and closed system of liberal democratic internationalism, especially as that system touches on business responsibilities under national and international human...

In order to have economically sustainable and profitable farms, farmers need to manage and understand factors that impact farm output and costs. Many factors can influence farms' output and costs, such as soil quality, environmental conditions, farm size, farm system, farmers' experience, and so...

The production of meat from farmed animals is problematic both on ethical and environmental grounds. However, we are on the eve of the mass production of cultured (lab) meat. This alternative to conventional meat should be both more environmentally sustainable and cause less harm to animals,...

Using the fourth round of the Indian National Family Health Survey (NFHS4), and subsequently replicating our results using the fifth round (NFHS-5), we document differential child physical growth patterns across caste groups in India, demonstrating that lower caste children are born shorter and...

This manuscript examines the design of the contracting environment in a bilateral trade model with unobservable relationship-specific investment. Contracts can only be offered after the investment is sunk, inducing a classical hold-up problem. When the investment is cooperative and investment...

With the increasingly stringent global restrictions on carbon emissions, enterprises are facing increasing carbon risks, which would drive up enterprise costs. However, at the same time, the increase of carbon risks may also force enterprises to improve investment efficiency by optimizing...

The way energy is produced has a massive effect on the sustainability of a system, necessitating a shift towards renewable energy sources. Therefore, the behaviour of producers in electricity markets is central to achieving any sustainability goals. In this article, we identify two problems to...

The increased fragmentation of production on the global value chains (GVCs) is a key trend in international trade. This study examines the causal effect of an investment in fixed assets on a firm’s position in the GVCs. It employs a combined panel data of Chinese firms spanning 2000–2007,...

Investments in both public and private are essential to Pakistan's economy. Public investment is crucial for any nation's economic development, but private investment serves as a catalyst for the creation of jobs and income. The primary purpose of this study is to empirically examine the...

In the wake of increased domestic and foreign entity rush for land in Africa, rural households remained the marginalized group in terms of access. Consequently, household’s farm investment decisions are affected. Arresting such situation calls for study of the factors driving households’...

This paper studies how corporate tax hikes transmit across countries through multinationals’ internal networks of subsidiaries. We build a parsimonious multicountry model to underscore two opposing spillover effects: While tax competition between countries generates positive investment...

I study the role of firm heterogeneity for the transmission of unconventional monetary policy in the form of "credit policy" à la Gertler and Karadi (2011). To this end, I lay out a Two-Agent New-Keynesian model with financially constrained and unconstrained firms and a financial intermediary...

We show that firms’ debt maturity structure plays an important role in investment above and beyond that of leverage. Firms with a longer debt maturity structure tend to invest more. These results are stronger for firms with high leverage, profitability, and growth potential. We rationalize our...

We study how the quality of investors' information across horizons influences investment. In our theory, managers care about how investment is impounded in current stock prices. Because prices imperfectly reflect investment’s value, they under-invest. However, they under-invest less when...

This applied research paper is written by Yinghua Fan (City University of Hong Kong), Guanhao Feng (City University of Hong Kong) and Dashan Huang (Singapore Management University).This paper exploits a unique scheme of the China Stock Connect for daily-level and stock-level holdings of...

Does a reduction in the corporate income tax rate trigger investments in developing countries? This paper answers this question in a difference in differences framework. Using firm-level data on Indian manufacturing firms I study the effect of the 2019 and 2020 Indian tax reform that reduced the...

Considering the reform of online voting rules in China and by using the data of firms listed on the Shenzhen Stock Exchange from 2011 to 2017, this paper aimed to explore the effect on firms’ investment efficiency from weak stakeholders' participation in governance. The results also indicate...

The investment-cash flow sensitivity (ICFS) of Chinese firms declined during the global financial crisis, which contradicts the conventional financial constraint interpretation of ICFS. We analyze this phenomenon by examining how cash flow uncertainty affects the ways of financing investment. We...

How does improvement in corporate governance impact firms' financing policies and investment behavior? Using a reform that improved shareholder oversight via mandatory audit committee, I document that improved corporate governance leads to lower net debt issuance, lower firm leverage, and higher...

The links between interest rates, cost of capital, hurdle rates, and capital allocation have been remarkably weak during the last few years. For instance, whereas the current yield on the World Government Bond Index is a paltry 1.2%, survey evidence suggests that the median reported investment...

Across the world, a structural growth slowdown is underway: at current trends, the global potential growth rate - the maximum rate at which an economy can grow without igniting inflation - is expected to fall to a three-decade low over the remainder of the 2020s. The slowdown could be even more...

The nature of the non accelerating inflation rate of unemployment is analysed. The focus of our analysis is the role of aggregate demand and capacity in the context of the NAIRU. Two aspects of the relationship between the level of aggregate demand and the NAIRU are of particular significance....