This paper attempts to explore the effect of finance constraints by examining the propensity of firms to save cash out of cash flows. Drawing on cash-cash flow sensitivity (CCFS), we overcome the errors in attributing information in cash flows to real and financial components. We employ...

Poor understanding of financial products and an inability to process financial information prevent millions of rural households in the developing world from making informed financial decisions. This article assesses the financial literacy and cognitive ability of farmers using data from a unique...