We develop a model of investment with financial constraints and use it to investigate the relation between investment … between q and investment, relative to the frictionless benchmark. We present a calibrated version of the model, which, due to … this effect, generates realistic correlations between investment, q, and cash flow …

research that uses cross-sectional differences in firm behavior to test for financing constraints on investment. This reply … of internal finance. Second, the KZ regression results (lower sensitivity of investment to cash flow for firms classified …

We provide new evidence on how monetary policy affects investment and firm finance in the United States and the United … conditioning on size, asset growth, Tobin's Q, leverage or liquidity - and drive the response of aggregate investment. Older … and financial frictions in amplifying the effects of monetary policy on investment …

1978-89. These datasets are used to estimate a range of empirical investment equations, and to investigate the role played … the suggestion that financial constraints on investment may be relatively severe in the more market-oriented UK financial …

This paper examines the importance of financial constraints for firm investment expenditures by looking at the … relationship between investment expenditures and proceeds from voluntary asset sales in financially healthy US manufacturing … companies. Specifically, we examine whether asset sales have a greater influence on investment expenditures for firms that are …

We quantify the role of financial leverage behind the sluggish post-crisis investment performance of European firms. We … investment more after the crisis. This negative effect is stronger for firms holding short-term debt in countries with sovereign … stress, consistent with rollover risk being an important channel influencing investment. The negative effect of firm leverage …

This paper examines the extent to which investment financing and market-timing explanations motivate public equity … one motive for the equity offer being to raise capital for investment. However, firms also hold onto much of the cash they …. These results suggest that market timing as well as investment financing is a motivation for equity offers …