This paper investigates whether investment spending of firms is sensitive to the availability of internal funds …. Imperfect capital markets create a hierarchy for the different sources of funds such that investment and financial decisions are … not independent. The relation between corporate investment and free cash flow is investigated using the Bond and Meghir …

capital to units with better investment opportunities, state groups do the opposite, especially when part of the “national … discipline state groups' tendency to ignore investment opportunities. We trace capital allocation decisions to the objectives of …

capital to units with better investment opportunities, state groups do the opposite, especially when part of the “national … discipline state groups' tendency to ignore investment opportunities. We trace capital allocation decisions to the objectives of …

firm investment policy. Finally, we develop and validate a new CEO overconfidence measure that is easily constructed from …

percentile) of pension deficit, investment increase by 6.7 cents (9.4 cents) for every dollar increase in cash. As the pension … deficit increases, firms deviate more from the predicted level of investment. These findings suggest that the incremental …, at a fixed cash level, total investment increases as pension deficit increases …