Previous studies argued that low investment-cash flow sensitivities of German firms may be caused by dominance of … panel data approach show that the dependence of investment spending on internal funds does not significantly differ between …

In this paper we describe a theoretical model of optimal investment of various types of financially constrained firms …. We show that the resulting relationship between internal funds and investment is non-monotonic. In particular, the … magnitude of the cash flow sensitivity of the investment is lower for firms with credit rationing compared to firms that are …

We develop a model of investment with financial constraints and use it to investigate the relation between investment … between q and investment, relative to the frictionless benchmark. We present a calibrated version of the model, which, due to … this effect, generates realistic correlations between investment, q, and cash flow. …

monetary and other shocks. The theory predicts a positive effect of cash flow on investment, given fundamental determinants of … investment. I use an empirical method developed by Gilchrist and Himmelberg (1995, 1999), which has previously only been used to … its investment, controlling for any information in cash flow about investment opportunities. As predicted by the balance …

The interpretation of the significant relation between business investment spending and cash flow has been … controversial. A large body of research has found that investment/cash flow sensitivities are higher for financially constrained … with the Kaplan and Zingales critique, investment/cash flow sensitivities are lower for financially constrained firms. This …

The excess sensitivity of investment to cash flow has been demonstrated in numerous studies. Recent research has …

level investment sensitivity to cash flow is used to identify financing constraints. We find that the sensitivities are … importantly, the cash flow sensitivity of investment is lower in countries with better-developed financial markets. This suggests …

factors (mainly, cash flows and other controlling variables) on corporate investment. By employing system-GMM estimation for … borrowing activities but also results in more corporate investment activities over the period from 2006 to 2016. Noticeably, the … internal cash flow is also significant factor, which enhances the activities of corporate investment. Finally, there are …

In this paper we use balance-sheet data and information on bankruptcy to study the relationship between investment …-2011, which also allows us to study the impact of the 2008 crisis on Czech companies. Using investment-cash flow sensitivity to … significant impact on the investment rate. By taking a closer look at individual subsamples we reveal that the existence of …