outside the U.S. due to a greater decline of intangible investment and a much slower recovery. Tangible capital can be … investment relies on firms’ liquidity holdings that were drawn down in the crisis and can only be rebuilt gradually through … retained profits. We provide a unified account of the findings through a dynamic model of corporate investment and liquidity …

and wish to ensure efficient investment in the future. We present such a model and use it to survey many of the empirical …

, 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 …