, 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 …

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

This paper investigates the sources of the correlation between corporate cash flow and investment by undertaking an in … investment-cash flow sensitivity. We find that in only 15% of firm-years is there some question as to a firm's ability to access … internal or external funds to increase investment. Strikingly, those firms that appear less financially constrained exhibit a …

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 …

This paper analyzes the determinants of buyout funds' investment decisions. In a model in which the supply of capital … is quot;stickyquot; in the short run, we link the timing of funds' investment decisions, their risk-taking behavior, and …'s precise investment choices. Our empirical findings are consistent with the model. First, established funds accelerate their …

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 …

will have no impact on corporate investment decisions. This paper develops econometric tests which distinguish between … these two views of dividend taxation. By extending Tobin's quot;qquot; theory of investment to incorporate taxes at both the … corporate and personal levels, the implications of each view for corporate investment decisions can be derived. The competing …

This paper proposes a simple homogeneous dynamic model of investment and corporate risk management for a financially … investment and financing decisions. In our model, corporate risk management involves internal liquidity management, financial … hedging, and investment. We determine a firm's optimal cash, investment, asset sales, credit line, external equity finance …

depend on the investment policy of the firm, we develop a theoretical model, determine the optimal investment policy and …

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 …