flows to fund investment), and that the sensitivity of investment to internal cash flows is higher for firms that report …

Do firms use credit line drawdowns to finance investment? Using a unique dataset of 467 COMPUSTAT firms with credit … with theory, our results confirm that firms use drawdowns to sustain investment after an idiosyncratic liquidity shock … investment increased to 16 percent. The effect was even larger for smaller and financially constrained firms. We find only …

A fundamental tenet of investment theory and the traditional theory of monetary policy transmission is that investment …, at best, for a substantial interest-rate effect on investment. In this paper, we examine the sensitivity of investment … management as well as those that do not expect to borrow over the coming year. Perhaps more surprisingly, we find that investment …