This paper investigates the relationship between financing constraints and investment cash flow sensitivities by … categories. The idea is that high cash reserves increase the ability of firms to undertake profitable investment opportunities … financial crisis. The results show that constrained firms exhibit greater investment to cash flow sensitivities than …

investment gap. The divergence in investment paths between cash-rich and cash-poor firms is particularly large for financially …

We empirically examine the effect of exposure to temporary and persistent cash flow shocks on firm investment and its … link with cash holdings. Theoretical models demonstrate that an expectation channel drives a wedge between the investment …

investment opportunities, sales growth, and the firm's own stock volatility. Economic uncertainty also explains the rise in cash … explore corporate data to investigate how economic uncertainty affected investment, dividend payouts and cash holdings, based … of England. These data demonstrate that heightened economic uncertainty lowered investment even after controlling for …

financial crisis and especially so during the recovery phase. This resulted in a persistent and growing investment gap between …

Cash holdings at the onset of a financial crisis are a key determinant of investment by SMEs not only during the crisis … persistent and growing investment gap. The amplification effect was present for SMEs with both volatile and stable cash holdings …

investment-cash flow sensitivity. First, we find that substitutability between reserved cash holdings and internal free cash flow … confirm that the level of net external financing can also partially explain the investment-cash flow puzzle. Lastly, by … examining the relationship between bank dependency and investment-cash flow sensitivity for recession and non-recession periods …

volatility in wholesale markets. Empirically, higher volatility of electricity prices leads to an increase in cash holdings, and … this effect is robust to instrumenting for price risk using weather volatility. Cash increases more with price risk in …