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 …

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 industrial 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 …

We highlight the role of cash flow uncertainty on corporate employment and investment. We find that a 1% increase in … cash flow uncertainty leads to a 0.62% decrease in tangible investment, a 1.39% decrease in intangible investment, and a 3 … would like corporations to increase their employment and investment, they should focus on policies that decrease corporate …

impact of financing constraints on corporate investment? The short answer is no. The common practice of using pre … from previous studies the sensitivity of investment to cash flow is inverse basin-shaped. We provide an understanding of … this shape by studying investment and financial policies jointly, under different regimes of financing constraints. …

This paper attempts to test whether financial supply-side shifts explain the low-investment climate of private firms in …

, uncertainty reduces corporate investment and employment. Using a novel firm-level measure of cash flow uncertainty, we find … empirically that uncertainty has a strong negative impact on corporate employment and investment in both tangible and intangible …, investment in tangibles would increase by 1.54%, and investment in intangibles would increase by1.29%. Our findings are robust to …

-equation model in which firms make interdependent decisions in financing, investment, and distribution, under the constraint that … and debt for R&D financing. R&D and physical capital investment are likely to be complementary for mature, but not for …

We reinvestigate the question of whether corporate investment during the financial crisis depended to a significant …, we must allow for the possibility that the unobserved firm-specific component of investment changed with the onset of the … significant determinants of investment. However, we do find evidence of a negative conditional dependence between corporate …