A recently much debated issue is why observed investment and growth rates inpoor countries are lower than traditional … investment rates is notmonotonic but follows a hump-shaped pattern. The empirical evidence shows thatalthough very poor economies … have very low investment rates there are'intermediately' developed economies that exhibit extremely high investmentrates …

We examine firms' simultaneous choice of investment, debt financing and liquidity in a large sample of US corporates … affect the corporate decisions of unconstrained firms more strongly than those of constrained firms. Investment-cash flow … sensitivities are particularly intense for unconstrained firms with high hedging needs. Investment opportunities (as proxied by Q …

financially turbulent periods in the 2000s in making investment decisions and in meeting demand for liquidity. A rise in … uncertainty regarding the ability to obtain external funds may have induced firms to rely on internal funds to finance investment … activities. Therefore, we shed light on the cash flow sensitivity of investment and cash holdings by estimating firm- level …