This paper studies changes in managers' investment decisions in response to short-term cash flow shocks. Using the … novel setting of the 1999 Taiwan earthquake and a difference-in-differences design, I find managers reduce investment in … in Taiwan and was unexpected, this setting allows me to hold constant market demand and the investment-opportunity set …

We highlight the role of cash flow uncertainty on corporate employment and investment. We find that a 1% increase in … cash flow uncertainty leads to a 0.62% decrease in tangible investment, a 1.39% decrease in intangible investment, and a 3 … would like corporations to increase their employment and investment, they should focus on policies that decrease corporate …

This paper sheds light on the mixed empirical evidence concerning financial constraint and investment sensitivity to … propose a cluster analysis procedure to identify unambiguous groups of constrained firms. We found the investment results to … providing a finer measurement of the financial constraint construct and deeper insight into the relationship between investment …

investment cash flow sensitivity and various CEO characteristics in either the existence or inexistence of managerial optimism …. Using a Q-investment model and departing from a sample of 475 annual observations, our results highlight that CEO …'s financial education, CEO's ownership and their optimism bias can explain distortions in corporate investment policy since they …

It is well documented that since at least the 1970s investment-cash flow (I-CF) sensitivity has been decreasing over … time to disappear almost completely by the late 2000s. Based on a neoclassical investment model with costly external …

Investment cash flow sensitivity constitutes one important block of the corporate financial literature. While it is … the investment cash flow sensitivity among panel data of American industrials firms during 1999-2010. Using Q-model of … investment (Tobin 1969), we construct and introduce a proxy of managerial optimism following Malmendier and Tate (2005a) to show …

Purpose - This study analyzes the inventory investment – cash flow sensitivity for 166 manufacturing firms in Turkey …).Findings- The relationship between inventory investment and cash flow is statistically positive for constrained firms, while … insignificant for unconstrained firms according to all models. The effect of Gross Domestic Product (GDP) on inventory investment is …

Investment cash flow sensitivity constitutes one important block of the corporate financial literature. While it is … the investment cash flow sensitivity among panel data of American industrial firms during 1999-2010. Using Q-model of … investment (Tobin, 1969), we construct and introduce a proxy of managerial optimism following Malmendier and Tate (2005a) to show …

investment cash flow sensitivity and various CEO characteristics in either the existence or inexistence of managerial optimism …. Using a Q-investment model and departing from a sample of 475 annual observations, our results highlight that CEO …'s financial education, CEO's ownership and their optimism bias can explain distortions in corporate investment policy since they …

French managers. Three different types of decisions are analyzed:investment decisions, financing decisions and payout …