strongly to cash flow. Paralleling these findings is the disappointing performance of the q theory of investment: even though …Many recent empirical investment studies have found that the investment of financially constrained firms responds … marginal q should summarize the effects of all factors relevant to the investment decision, cash flow still matters. We examine …

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

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

investment, saving, and debt of firms when Tobin's q serves as a proxy for marginal q …

We compare the ability of three measurement error remedies to deliver unbiased estimates of coefficients in investment …