Lawrenz, Jochen; Oberndorfer, Julia - In: Schmalenbach journal of business research : SBUR 75 (2023) 4, pp. 483-518
In order to identify the economic driver of negative investment-cash flow sensitivities (ICFS), we derive testable predictions from extending a theoretical investment model with endogenous financing costs ("revenue effect") and contrast them with the corporate life-cycle hypothesis. We find that...