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 …

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 …

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

The best predictor of current investment at the firm level is lagged investment. This lagged-investment effect is … empirically more important than the cash-flow and Q effects combined. We show that the specification of investment adjustment … costs proposed by Christiano, Eichenbaum and Evans (2005) predicts the presence of a lagged-investment effect and that a …

The Q-theory of investment says that a firm's investment rate should rise with its Q. We argue here that this theory … also explains why some firms buy other firms. We find that 1. A firm's merger and acquisition (Mamp;A) investment responds … to its Q more -- by a factor of 2.6 -- than its direct investment does, probably because Mamp;A investment is a high …

, the sensitivity of cash to cash flow, and the sensitivity of investment to cash flow all decline significantly, while … investment significantly increases following the acquisition. These effects are stronger in deals more likely associated with …