irreversibility constraints. The financing constraint implies that firms cannot borrow unless the debt is secured by collateral; the … cyclical behavior of aggregate fixed investment, variable capital investment, and output in the presence of persistent … fixed capital investment is reinforced by the financing constraint. Second, the effect of the financing constraint on …

We examine firms' simultaneous choice of investment, debt financing and liquidity in a large sample of US corporates …, constrained firms with low hedging needs are found to employ more debt to finance their investment opportunities and build up … affect the corporate decisions of unconstrained firms more strongly than those of constrained firms. Investment-cash flow …

order to better coordinate investment and financing decisions. This work shows how optimal investment, debt and hedging … particular, when internal funds react to a prospective price change (neutral shock), investment and debt would be positively … related; when internal funds react to a non neutral productivity shock, investment and debt would be either negatively related …

In a context of uncertain returns to investment, a firm may face increasing costs of borrowing and uncertain value of … fluctuations of its cash flow, in order to better coordinate investment and financing decisions. This work moves within this …

Cash holdings at the onset of a financial crisis are a key determinant of investment by SMEs not only during the crisis … persistent and growing investment gap. The amplification effect was present for SMEs with both volatile and stable cash holdings …

The macroeconomic effects on growth, investment and private sector employment of different ways of rolling back the … cutting public spending on private goods induce an investment boom. Making the tax system less progressive by cutting tax … credits and the income tax rate induces an investment boom as well. The effects of endogenous growth, adjustment costs for …

The paper explores the investment behaviour of German firms in the context of the Q-approach, which plays a dominant … role in empirical investment research. The analysis is based on the Deutsche Bundesbank's corporate balance sheet … by Gilchrist and Himmelberg. We compare the results from two different estimation techniques for dynamic investment …

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 …