' investment, growth and financial constraints. Combining propensity score matching with a difference-in-differences estimator, our … internal funds. We also provide evidence that these effects are concentrated among acquisitions during the 2007-2009 financial … crisis, relatively small target firms, and domestic rather than foreign acquisitions. …

level investment sensitivity to cash flow is used to identify financing constraints. We find that the sensitivities are … importantly, the cash flow sensitivity of investment is lower in countries with better-developed financial markets. This suggests …