This paper reexamines the empirical evidence on the cash flow sensitivity of cash presented by Almeida, Campello, and … Weisbach (2004). The original paper introduces a model in which financially constrained firms choose to save cash out of … incremental cash flows but financially unconstrained do not. The authors find evidence consistent with this hypothesis on a sample …

shedding light on the phenomenon of cash flow bullwhip (CFB). The objective of this article is to provide the state of the art …