Variables	Definition
I_NEW	New Investment
Growth	Growth rate of sales, proxy for investment opportunity
Cash	Balance of cash and short term investments deflated by total assets measured at the start of the year
Age	The log of the number of years the firm has been established
Size	The log of total assets measured at the start of the year
Stock Returns	The stock returns for the year prior to the investment year. It is measured as the change in market value of the firm over that prior year
Year Indicators	A vector of indicator variables to capture annual fixed effects
Industry Indicators	A vector of indicator variable to capture industry fixed effects.
	An estimate of over-investment
FCF	Free cash flow, cash flow beyond that necessary to maintain assets in place
Tenure	CEO’s tenure, indicator variables, 1 indicates CEO’s tenure is more than 3 years, 0 less than 3 years