This study tests for financial constraints on R&D investment and how they differ from capital investment. To identify …, measured by mark-ups, are more decisive for R&D than for capital investment. For external constraints, we find a monotonic … relationship between the level of constriction and firm size for both types of investment. Thus, external constraints turn out to …

rate and credit channels on business fixed investment in the German manufacturing sector. Our panel of financial statements … interest rates by 100 basis points would depress investment demand by almost 4% within the first year. Using our direct measure … demand. Furthermore, changes in the rating of firms seem to affect investment demand in a way that is consistent with the …

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 empirical investment literature provides evidence on financing constraints mostly by estimating investment cash … external capital and subsequent investment levels. Based on the theoretical findings, I provide empirical evidence from a … effect on the probability of being financially restricted. -- Capital Constraints ; Taxation ; Investment ; Cash Flow ; Firm …