Most of the papers in corporate finance use the investment-cash flow sensitivity as a key metric to gauge financing …

Purpose – The purpose of this paper is to verify the existence of financial constraints for investment in Brazil, an … and GMM to estimate dynamic models of investment that take into account the proposals of the hierarchy of finance theory …. In addition, the paper controls for growth opportunities. Capital market imperfections affect firm investment in Brazil …

This paper uses the financial crisis of 2008 as a natural experiment to demonstrate that when measuring investment … investment-cash flow sensitivity, which decreased substantially after the crisis when banks changed their expectations about the … value of assets on firms' balance sheets. This paper deepens our understanding of firms' investment behavior. …