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 …

A large discrepancy exists on the use of the investment–cash flow sensitivity as a measure of financing constraints of … shows a positive investment-cash flow sensitivity for business group affiliated firms and negative investment cash flow … sensitivity for non-group affiliated firms. Additional tests accordingly express that investment-cash flow sensitivity of …