Kaplan and Zingales [1997] provide both theoretical arguments and empirical evidence that investment-cash flow …

The strong positive relationship between corporate cash flow and investment has been interpreted through the lens of … rights to tracts of federal land. We find the standard positive relationship between investment and cash flow in this data … these leases. Interestingly, the increased investment comes from an increase in the price paid per tract with little to no …

companies. I test the joint hypothesis that 1) a decrease in cash/collateral decreases investment, holding fixed the … profitability of investment, and 2) the finance costs of different parts of the same corporation are interdependent. The results … support this joint hypothesis: oil companies significantly reduced their non-oil investment compared to the median industry …

measures of liquidity on the investment decisions of U. K. firms. These variables are introduced via an extension of the Q … model of investment which explicitly includes agency/financial distress costs. We discuss if the significance of cash flow …

In this paper I analyze the relationships among investment, q, and cash flow in a tractable stochastic model in which … regressions of investment on q and cash flow. In empirical studies, the estimated cash-flow coefficient is generally positive and …

competitive industries, we find that high industry-level stock-market valuation, investment and new financing are followed by …

shareholders and managers in which managers have private benefits or private costs of investment. Managers overinvest when they … compensation, investment, and firm performance for both cases. The relationship between firm performance and managerial incentives …, in isolation, is insufficient to identify whether managers have private benefits or private costs of investment. In order …

-specific costs of capital. We show that SOEs did respond to the performance evaluation reform by altering their investment decisions … evidence that incentive schemes affect real investment and sheds new light on challenges faced by economic reforms in China …

This article estimates a dynamic structural model of firm R&D investment in twelve Swedish manufacturing industries and … uses it to measure rates of return to R&D and to simulate the impact of trade restrictions on the investment incentives. R … both the expected return to R&D and R&D investment level, thus reducing an important source of the dynamic gains from trade …