investment cash flow sensitivity and various CEO characteristics in either the existence or inexistence of managerial optimism …. Using a Q-investment model and departing from a sample of 475 annual observations, our results highlight that CEO …'s financial education, CEO's ownership and their optimism bias can explain distortions in corporate investment policy since they …

Purpose: The purpose of this paper is to examine the impact of managerial optimism on corporate investment regarding … the financially constrained firms for the case of Greece. Taking as a fact that managers principally are optimistic and … often overconfident an effort is made to highlight the effect of this psychological bias on managerial investment decision …

In this paper, we present a literature review and classification scheme for investment cash flow sensitivity under … findings. Literature on investment cash flow sensitivity under behavioral corporate finance isn't well developed. In fact, the … explanatory power and they can succeed to explain the dependence of corporate investment on the internal cash flow availability …

Investment cash flow sensitivity constitutes one important block of the corporate financial literature. While it is … the investment cash flow sensitivity among panel data of American industrials firms during 1999-2010. Using Q-model of … investment (Tobin 1969), we construct and introduce a proxy of managerial optimism following Malmendier and Tate (2005a) to show …

The study investigates the role of financial development in boosting the investment efficiency of firms' investments in … concludes that firms suffering from under- (over-) investment problem due to financing constraints (agency problem), are more … likely to increase (decrease) their investment' in the response of underlying financial development in the economy. This …

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 …

/methodology/approach-The investment of firms with optimistic managers is more sensitive to cash flow than the investment of firms with managers who are …. Finally, it is confirmed that investment of firms with optimistic managers was found to be more sensitive to cash flow than … the investment of firms with managers who are not optimistic. Optimism was proved to be extremely effective concerning …

We empirically examine the effect of exposure to temporary and persistent cash flow shocks on firm investment and its … link with cash holdings. Theoretical models demonstrate that an expectation channel drives a wedge between the investment …

In this paper, we analyze the effect of financial uncertainty on corporate investment using firm-level panel data from … the Republic of Korea. We find that financial uncertainty has a significant negative effect on corporate investment, and … investment irreversibility amplify the negative effect of uncertainty. The inverted U-shaped curve of the uncertainty effect …