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, generate realistic correlations between investment, q, and cash flow …

particularly concerning in Japan, where the success of Abenomics depends on a transition from stimulus-driven to self …-sustaining growth based on private consumption and investment. This paper finds that Japanese nonfinancial firms have accumulated cash … at the expense of investment and dividends, hampering this transition. The evidence suggests that cash accumulation is …

particularly concerning in Japan, where the success of Abenomics depends on a transition from stimulus-driven to self …-sustaining growth based on private consumption and investment. This paper finds that Japanese nonfinancial firms have accumulated cash … at the expense of investment and dividends, hampering this transition. The evidence suggests that cash accumulation is …