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 …

The paper develops a model of firm´s investment under uncertainty with financial market imperfections and analyzes the … effects of financial constraints on firm´s investment. Firm´s investment is an increasing function of the firm´s marginal q …, however the investment function is characterized by an upper bound that depends on the firm´s borrowing capabilities. The firm …

The paper develops a model of firm's investment under uncertainty with financial market imperfections and analyzes the … effects of financial constraints on firm's investment. Firm's investment is an increasing function of the firm's marginal q …, however the investment function is characterized by an upper bound that depends on the firm's borrowing capabilities. The firm …

and external funds. As a consequence investment by firms facing high information cost is not only determined by expected … study derives a theoretical investment-liquidity constraint model to test the hypothesis that the investment decisions of … on the severity of liquidity constraints for investment. The major findings of the study indicate that when the …

opportunities and investment demand. Financial development primarily affects firms' external financing constraints. (2) Large firms …