The aim of this paper is to ascertain corporate investment reaction in bank-dependent companies in times of crisis. Our … investigation covers the differences in corporate investment reaction due to the global financial crisis (GFC) of 2007-2009 and the … corporate investment, but a statistical significance was found only for the GFC period. We also found a positive relationship …

This paper uses the financial crisis of 2008 as a natural experiment to demonstrate that when measuring investment … investment-cash flow sensitivity, which decreased substantially after the crisis when banks changed their expectations about the … value of assets on firms'' balance sheets. This paper deepens our understanding of firms'' investment behavior …