This paper examines the investment-cash flow sensitivities (ICFS) controversy as a representative of financial … constraints by investigating the panel data of 288 listed firms from Pakistan. Panel data methodology along with First Difference … Generalized Method of Moments (GMM) technique is used for estimation. The result shows positively significant investment cash flow …

A large discrepancy exists on the use of the investment–cash flow sensitivity as a measure of financing constraints of … firms. We examine this discrepancy by considering business group affiliated firms in Pakistan. The study includes 58 group … shows a positive investment-cash flow sensitivity for business group affiliated firms and negative investment cash flow …