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 …

between routine and "investment spike" financing. This study documents significant heterogeneity in investment spike financing …, particularly by firm size. Further, when spike size or pre-investment leverage is larger, unlike large firms, small firms issue … less equity. These results suggest that small firms' financing patterns around investment spikes are consistent with the …

How do firms finance their investment? To what extent does the financing mix depends on the nature or the size of … investment? To what extent does the funding mix of investment vary along firm size? Relying on a unique database of firms … picture of the financial resources used by firms to finance their investment.We uncover significant cross …

explore corporate data to investigate how economic uncertainty affected investment, dividend payouts and cash holdings, based … of England. These data demonstrate that heightened economic uncertainty lowered investment even after controlling for … investment opportunities, sales growth, and the firm's own stock volatility. Economic uncertainty also explains the rise in cash …

the difference in the assessment of the company's investment capacity based on internal financing sources, which are …

-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 …