We develop a model of investment, payout, and financing policies in which firms face uncertainty regarding their … between retention and payout, between internal or external financing of investment, and between speculation and hedging. In … the model, investment and payout do not always increase with slack for constrained firms and the choice between internal …

We investigate the effect of cash flow volatility on investment. Our evidence suggests that financially constrained … firms decrease investment (i) when experiencing persistently high volatility; (ii) when experiencing both high volatility …

We investigate the association between cash flow volatility and labor investment efficiency using a sample of US …-listed firms from 2000 to 2021. We document a positive association between cash flow volatility and labor investment efficiency. We … also document that dividend-paying firms are associated with higher labor investment efficiency; however, we estimated a …

We study the time-varying effects of Tobin's q and cash flow on investment dynamics in the USA using a vector … variation over time of the response of investment to shocks in both variables. The time-varying sensitivity of investment to a … show that, although Tobin's q and cash flow are complementary sources of information for investment decisions, their …