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 …

indicate that greater cash holdings are associated with higher levels of investment for constrained firms with high hedging … needs and that the association between investment and value is stronger for constrained firms than for unconstrained firms …