We investigate the analytical and empirical linkages between cash flow, uncertainty, and firms' capital investment … important firm-specific variables, uncertainty is an important determinant of firms' investment behavior. Depending on the … measure of uncertainty used, investment may be stimulated or curtailed by the effects of uncertainty on its own or through its …

We develop an integrated theory of investment, seasoned equity offerings (SEOs), liquidation, and corporate savings … payout policies. Facing costly external financing, the firm prefers to fund its investment internally, so that its optimal … substantial delay in investment; (4) A financially constrained firm over-invests in early stages of its life-cycle in an effort to …

uncertainty, firms that are credit constrained switch the composition of investment by reducing productivity-enhancing investment …