This book consists of three self-contained empirical essays, which deal with different topics in the field of firmsÕ investment behavior. The first chapter explores firmsÕ partial adjustment behavior toward target investments, the second chapter examines the effects of
uncertainty on firmsÕ investment structures and the third chapter tests the explanatory power of existing measures of financial constraints. All analyses are based on unique data on private manufacturing firms in Germany provided by the Economics and Business Data Center.