We examine the effect of agency cost on the relation between top executives' overconfidence and investment-cash flow … increased investment-cash flow sensitivity. However, this relation holds only for companies with state-owned entities as … investment-cash flow sensitivity holds only for companies that exhibit high agency cost. Our results therefore suggest that …

We investigate how product market competition jointly affects specific corporate investment and financing behavior … sell off assets and/or investments. The first three actions are financing decisions while the last two are investment … product market competition are analyzed. The evidence shows that product market competition does affect both investment and …

We ask whether the quality of internal information matters for investment decisions. We predict that investment is more … information properties. We find that the sensitivity of investment to profitability is increasing, while the sensitivity of … investment to market-to-book is decreasing in internal information quality. Our focus on internal information and decision making …

An important debate in the literature relates to the use of investment-cash flow sensitivity (ICFS) to measure finance … levels of investment. But, only the PCF-sensitive firms have high level of cash flows. With age, the investment of all three …

We examine whether internal funds matter for investment when the measurement error in q is addressed. By carefully … investment. We also find that an analyst forecast based q measure is not superior to a stock market based one. We further propose …

In China, regional disparities are important. We examine the difference in the sensitivity of investment to cash flow … that firms in inland regions rely more on their internal funds in terms of their investment activities than those in …

In a sample of 485 Chinese public high-tech companies, we show that the R&D investment is significantly dependent on …

This study provides novel evidence that cash flow news quantitatively explains the investment effect in the cross …-section of stock returns. The negative return predictability of asset growth, investment growth, and accruals is evident only … through the cash flow news component of returns. The cash flow news returns associated with investment-sorted portfolios …

entails changes in real corporate actions. We document a positive relation between abnormal trading volume, future investment … expenditures, and fi nancing cash flows. This positive relation is not subsumed by the arrival of investment-related news or other …