investment from 1990 to 1999 through the cost-of-capital and the cash-flow channels. We compare several specifications of neo …

firms' investment ratio. Changes in user costs are significantly affected by changes in the monetary policy indicator. In … addition, firm specific balance sheet characteristics, such as the lagged cash stock to capital ratio influence the investment …

We estimate the effect of demand and price uncertainty on firms’ investment decisions from a panel of manufacturing … investment, while price uncertainty is insignificant. This is consistent with the behavior of monopolistic firms with … irreversible capital (Caballero, 1991). Further, firms revise their investment plans very little. They may do so in response to new …

investment decisions. Our findings support the hypothesis that financial flexibility relates to companies’ ability to undertake … future investment, despite market frictions hampering possible profitable growth opportunities. …

This paper investigates the effects of monetary policy on firms' investment behaviour. The analysis relies on a …. First, we estimate a reduced-form investment equation derived from the neo-classical model, augmented by cash flow. This …

This paper studies the effects of monetary policy on the investment behaviour of various categories of Italian firms … collateral are more affected by monetary policy. In quantitative terms, the difference in the response of investment by different …

We present a comparable set of results on the monetary transmission channels on firm investment for the four largest … channel. For each of those countries we estimate neo-classical investment relationships, explaining investment by its user … cost, sales and cash flow. We find investment to be sensitive to user cost changes in all those four countries. This …

accelerator specification of investment demand augmented by the liquidity ratio and a firm specific user cost of capital. The … significant for young firms due mainly to the fact that young firms rely more heavily on sales to increase investment. In general … it is found that firms can reduce the sensitivity of investment to their liquidity position by building lending …

The excess sensitivity of investment to cash flow has been demonstrated in numerous studies. Recent research has …