on average q in a univariate regression of investment on average q. In a multiple regression of investment on average q … financial constraint, but it does not indicate a shortage of liquidity to fund current investment. In addition, the coefficient …

one, Tobin's Q is informative about the firm's growth prospects. We show that investment is positively related to Tobin …, cash flow has a positive effect on investment, and this effect is larger for smaller, faster growing and more volatile … cast doubt on evidence of financing constraints based on cash flow effects on investment …