The study of the investment-cash flow (ICF) sensitivity constitutes one of the largest literatures in corporate finance …&D investment and developments in equity markets have impacted ICF sensitivity estimates. We show that for the time period 1970 …-2006, the ICF sensitivity: i) largely disappears for physical investment, ii) remains comparatively strong for R&D, and iii …

This paper investigates the financial determinants of research and development (R&D) investment in Asia, where …&D investment to changes in cash flow, indicating reliance on internal financing of R&D and financially constrained firms, and a … cash flow sensitivity of R&D investment, suggesting more stable funding of innovation. Overall, there does not seem to be …

In this paper we use balance-sheet data and information on bankruptcy to study the relationship between investment …-2011, which also allows us to study the impact of the 2008 crisis on Czech companies. Using investment-cash flow sensitivity to … significant impact on the investment rate. By taking a closer look at individual subsamples we reveal that the existence of …

We examine firms' simultaneous choice of investment, debt financing and liquidity in a large sample of US corporates … affect the corporate decisions of unconstrained firms more strongly than those of constrained firms. Investment-cash flow … sensitivities are particularly intense for unconstrained firms with high hedging needs. Investment opportunities (as proxied by Q …