George, Rejie; Kabir, Rezaul; Qian, Jing - In: Journal of Multinational Financial Management 21 (2011) 2, pp. 69-88
A controversy exists on the use of the investment-cash flow sensitivity as a measure of financing constraints of firms. We re-examine this controversy by analyzing firms affiliated to Indian business groups. We find a strong investment-cash flow sensitivity for both group-affiliated and...