We examine firms' simultaneous choice of investment, debt financing and liquidity in a large sample of US corporates between 1980 and 2014. We partition the sample according to the firms' financial constraints and their needs to hedge against future shortfalls in operating income. In contrast to...

I employ a dynamic multi-equation model in which firms make interdependent financing and investment decisions under the constraint that sources and uses of cash must be equal. In this setting, R&D-cash flow sensitivities for young and mature high-tech firms are both small and indistinguishable...

Innovation scholars highlight the economic benefits to firms, while research findings on the relationship between innovation output and economic returns remain mixed. In this study, we develop the profiting from innovation (PFI) framework and address the crucial role of financial constraints in...