Firth, Michael; Malatesta, Paul H.; Xin, Qingquan; Xu, … - In: Journal of Corporate Finance 18 (2012) 3, pp. 433-450
We investigate the relation between the internally generated cash flows and fixed asset investments of Chinese firms and find that it is U-shaped. Cash flow and investment are negatively related for low levels of cash flow but positively related for high levels of cash flow. We find that...