We investigate financing constraints in a large cross-country data set covering most of the European economy. Firm level investment sensitivity to cash flow is used to identify financing constraints. We find that the sensitivities are significantly positive on average, controlling for country...

We test whether firms with a single bank are better shielded from loss of credit and investment cuts in periods of adverse cash flow shocks than firms with multiple bank relationships. Our estimates of the cash flow sensitivity of investment show that both types of firms are equally subject to...

Using a large panel of 6.946 French manufacturing firms, this paper investigates the effect of the cost of capital and on cash flow on investment from 1990 to 1999. We compare several specifications of neo-classical demand for capital, taking into account transitory dynamics. The user cost of...