This paper reports a new test of capital structure theories using a filtering technique to identify large investment projects. Contrary to the results of aggregate studies, firms respond to investment spikes by raising la rge amounts of external finance. Large firms raise debt finance and small firms issue new equity. These results run counter to predictions of the pecking order theory. New equ...

evaluating and selecting alternatives investment projects needs considering all relevant and important aspects. in traditional methods, the focus is just on tangible monetary criteria. also in the traditional methods, either all the information’s about factors must be known precisely or sufficient objective data must be available for applying probability theory. in this paper, a combinative app...

We investigate the impact of debt on a panel of U.S. manufacturing firms’ capital investment behavior as the underlying firm-specific and market-level uncertainty changes. Our estimates show that the influence of leverage on capital investment may be stimulating or mitigating depending on the effects of uncertainty.

This paper describes a methodology, and its implementation in a tool, that is designed to make it easier to produce an investment appraisal and business case for projects with social outcomes and longer-term benefits external to the primary project initiator. This meets a need common to innovative public and charity sector projects which typically focus on a wide range of outcomes that extend b...

In this paper we study the capacity investment decision for make-to-order manufacturing firms that utilize a fixed capacity, operate in a stochastic, stationary market, and can influence their demand rate by increasing or decreasing their sales effort. We consider manufacturing situations that differ in sales contribution, in market elasticity to sales effort, work-in-process costs, and demand ...