investment-cash flow sensitivity as a metric to represent finance constraint of firms can be misleading. This is because cash … flow apart from signaling change in net worth may also signal investment opportunities of firms. Following Hovakimian and … investment opportunities unless they are financially constrained. We study private Indian manufacturing firms in the period 1994 …

In this paper, we present a literature review and classification scheme for investment cash flow sensitivity under … findings. Literature on investment cash flow sensitivity under behavioral corporate finance isn't well developed. In fact, the … explanatory power and they can succeed to explain the dependence of corporate investment on the internal cash flow availability …

wisdom as a proxy for investment opportunities and obscures a more complicated relationship between the accounting for … operating and financing activities (leverage). Given a low book-to-value ratio, two groups of firms are both likely to conduct … consistent with an investment-based explanation. Finally, we document evidence that issuers with low growth opportunities and …

The purpose of this work is to verify the existence of financial constraints for investment in Brazil, an emerging … market with growing international visibility. Using panel data methodology and GMM, we estimate dynamic investment models …-2006. Our findings show that Brazilian firms face financial constraints since their investment depend on internally generated …

How do firms vary their capital investment and financing policies in response to business cycle fluctuations within … aggregate business cycle, we find that firm-level capital investment and debt issuance are procyclical, whereas net equity …-level financing policies and aggregate business cycle documented in previous studies. We show that extending the standard dynamic …

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

debt when financing investment to retain financial flexibility. Underutilization of debt persists even when firms exercise … their last investment options, and it is more (less) severe for more back-loaded (front-loaded) investment opportunities …. Thus, leverage dynamics crucially hinge upon the structure of the investment process and otherwise identical firms appear …

Investment cash flow sensitivity constitutes one important block of the corporate financial literature. While it is … the investment cash flow sensitivity among panel data of American industrials firms during 1999-2010. Using Q-model of … investment (Tobin 1969), we construct and introduce a proxy of managerial optimism following Malmendier and Tate (2005a) to show …

distressed if it breached the minimum capital requirements set by law. The results demonstrate that all the investment …-related factors matter for financial distress, with timing, intensity, sector, and type of investment all playing a role. Furthermore …, the data seem to suggest that investment in tangibles is more cycle-sensitive for the transport and construction and real …

Investment cash flow sensitivity constitutes one important block of the corporate financial literature. While it is … the investment cash flow sensitivity among panel data of American industrial firms during 1999-2010. Using Q-model of … investment (Tobin, 1969), we construct and introduce a proxy of managerial optimism following Malmendier and Tate (2005a) to show …