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 …

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

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 …

, while the Q literature has used cash flow sensitivity analysis to test whether financing constraints hinder investment. This … banks continued to facilitate investment once non-bank financing options became available. Using the explicit bond issuing … criteria to solve the endogenous firm-sorting problem, I measure the investment-cash flow sensitivity of Japanese firms, and …

We investigate how a combination of limited liability and preexisting debt distort firms’ investment and equity payout … investment distortions, where high leverage firms tend to overinvest but low leverage firms tend to underinvest. Permitting …

investment and employment. We first describe how companies used credit lines during the crisis (access, size of facilities, and … whether managers had difficulties in renewing or initiating lines. We also describe the dynamics of credit line violations and …

the start of the financial crisis (third quarter of 2007) to its peak (first quarter of 2009), both large and investment … sharply (by 17.8% in the case of investment-grade firms) after the fall of Lehman. Though small and unrated firms have …

We develop an integrated theory of investment, seasoned equity offerings (SEOs), liquidation, and corporate savings … payout policies. Facing costly external financing, the firm prefers to fund its investment internally, so that its optimal … substantial delay in investment; (4) A financially constrained firm over-invests in early stages of its life-cycle in an effort to …

Investment decisions require trading off current expenditures against future revenues. If revenues extend far enough … into the future, the executives responsible for designing long-run investment policy may no longer be in office by the time … investments during their last years in office. In our empirical work, however, we find that investment expenditures on research …