Koski, Jennifer LThavasi, Nigel2012-09-132013-03-132012-09-132012Thavasi_washington_0250E_10672.pdfhttp://hdl.handle.net/1773/20621Thesis (Ph.D.)--University of Washington, 2012This essay analyzes the potential real economic effects of a feedback mechanism on firms' real investment and financing policies. Using a matched sample method with option-listed firms between 1973 and 2009, I document some evidence consistent with the presence of the feedback effect described in Goldstein and Geumbel (2008).application/pdfen-USCopyright is held by the individual authors.FinanceBusiness administrationThesis