In this paper I analyze the relationships among investment, q, and cash flow in a tractable stochastic model in which … operating profit of capital, I extend the model to include measurement error and analyze the cash-flow coefficient in … regressions of investment on q and cash flow. In empirical studies, the estimated cash-flow coefficient is generally positive and …

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 …