ABSTRACT. Gilchrist et al. claim that firms, unlike investors, can exploit stock market bubbles by issuing new shares at inflated prices. Baum et al. investigate the analytical and empirical linkages between firms' capital investment behavior and financial market frictions. Almeida and Carneiro estimate the rate of return to firm investments in human capital in the form of formal job training, using a panel of large firms with unusually detailed information on the duration of training, the direct costs of training, and several firm characteristics such as their output, workforce characteristics and capital stock.