financially turbulent periods in the 2000s in making investment decisions and in meeting demand for liquidity. A rise in … uncertainty regarding the ability to obtain external funds may have induced firms to rely on internal funds to finance investment … activities. Therefore, we shed light on the cash flow sensitivity of investment and cash holdings by estimating firm- level …

This paper investigates the link between corporate debt and investment for a group of five peripheral euro area … countries. Using firm-level data from 2005-2014, we postulate a non-linear corporate leverage-investment relationship and derive … thresholds beyond which leverage has a negative and significant impact on investment. The investment sensitivity of debt …

This paper analyses the implications of corporate indebtedness for investment following large economic shocks. The … suggest that investment of high-debt firms is significantly depressed for an extended period in the aftermath of economic …% higher than that of firms with lower debt burdens. The negative impact of high debt on investment is most evident for firms …

This article tests the hypothesis that financial supply-side shifts help to explain the low-investment climate of …

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

We employ a Bayesian estimation technique to construct firm-varying investment-cash flow sensitivities (ICFS) for a …

We examine investment behavior when firms face costs in the access to external funds. We find that despite the … existence of liquidity constraints, standard investment regressions predict that cash flow is an important determinant of … investment only if one ignores q. Conversely, we also obtain significant cash flow effects even in the absence of financial …

-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 …

Bertola/Caballero (1994) and Abel/Eberly (1996) extended Jorgenson's classical model of firms' optimal investment. By … introducing investment frictions, they were able to capture the role of future anticipations in investment decisions as well as … the lumpy and intermittent nature of investment dynamics. We extend Jorgenson's model to the other direction of financing …