, uncertainty reduces corporate investment and employment. Using a novel firm-level measure of cash flow uncertainty, we find … empirically that uncertainty has a strong negative impact on corporate employment and investment in both tangible and intangible …, investment in tangibles would increase by 1.54%, and investment in intangibles would increase by1.29%. Our findings are robust to …

shocks to their borrowing cost. It develops a dynamic model of corporate investment and financing decisions subject to real … size distribution and replicates the untargeted negative relationship between firm size and investment rates and cash … holdings. Cash holdings help firms sustain investment when access to debt becomes costly or restricted. However, a shock to …