This paper is a survey of recent empirical work on financial constraints faced by firms. It is
organized as a series of stylized results which mirror what is generally understood about the …

The neoclassical theory of investment has mainly been tested with physical investment, but
we show that it also helps explain intangible investment. At the firm level, Tobin's q explains …

In the investment theory, firms with high expected investment growth earn higher expected
returns than firms with low expected investment growth, holding investment and expected …

This paper provides new evidence of how macroeconomic conditions affect capital structure
choice. We model firms' target capital structures as a function of macroeconomic conditions …

We apply simulated method of moments to a dynamic model to infer the magnitude of
financing costs. The model features endogenous investment, distributions, leverage, and …

This paper tests for the importance of cash flow on investment in fixed capital and R&D using
firm-level panel data in two countries between 1985 and 1994. For German firms, cash flow …

We test whether stock market mispricing or private investor information in stock prices affects
corporate investment. We develop an econometric methodology that disentangles stock …

We analyze how the availability of internal funds affects a firm's investment. We show that
under fairly standard assumptions, the relation is U-shaped: investment increases …

Firms spend substantial resources on marketing and selling. Interpreting this as evidence of
frictions in product markets, which require firms to spend resources on customer acquisition …

We review the last two decades of research in dynamic corporate finance, focusing on
capital structure and the financing of investment. We first cover continuous time contingent …