We study the time-varying effects of Tobin's q and cash flow on investment dynamics in the USA using a vector … variation over time of the response of investment to shocks in both variables. The time-varying sensitivity of investment to a … show that, although Tobin's q and cash flow are complementary sources of information for investment decisions, their …

investment spending in the presence of multiple investment options. It is argued that after financial liberalization real sector … investment projects. The empirical results using firm level data for Mexico and Turkey confirm this hypothesis and suggest that … profits from fixed and financial assets have differential effects on fixed investment spending. …

We develop a model of investment with financial constraints and use it to investigate the relation between investment … between q and investment, relative to the frictionless benchmark. We present a calibrated version of the model, which, due to … this effect, generates realistic correlations between investment, q, and cash flow. …

investment and employment decisions. The results indicate that firms' financial position is important for explaining firms … explaining investment and employment dynamics. Likewise, the results obtained point to a non-linear impact of financial position … financial factors in explaining investment and employment dynamics is likely to be greater in recessionary periods …

The interpretation of the significant relation between business investment spending and cash flow has been … controversial. A large body of research has found that investment/cash flow sensitivities are higher for financially constrained … with the Kaplan and Zingales critique, investment/cash flow sensitivities are lower for financially constrained firms. This …

This paper uses the financial crisis of 2008 as a natural experiment to demonstrate that when measuring investment … investment-cash flow sensitivity, which decreased substantially after the crisis when banks changed their expectations about the … value of assets on firms' balance sheets. This paper deepens our understanding of firms' investment behavior …

financing in buyout transactions, their investment rates are both lower and more sensitive to cash flows. In addition, I analyze … obtain equity financing from PE investors, while investment levels do not seem to be affected after a buyout However …

, uncertainty reduces corporate investment and employment. Using a novel firm-level measure of cash flow uncertainty, we find … empirically that uncertainty has a strong negative impact on corporate employment and investment in both tangible and intangible …, investment in tangibles would increase by 1.54%, and investment in intangibles would increase by1.29%. Our findings are robust to …

The investment literature has long acknowledged the time- and frequency-varying dynamics of the relationship between … investment, Tobin's Q and cash flow. In this paper, we use continuous wavelet tools to estimate and assess the relationship … complementary sources of information for investment, the former being more important for firms' investment decisions in the medium …