Investment, irreversibility, and financing constraints: Evidence from a panel of transition economies

Focusing on a panel of unlisted firms from transition economies, we observe that only firms facing low irreversibility exhibit high and significant investment-cash flow sensitivities. Our findings provide a new explanation for why some financially constrained firms may exhibit low sensitivities.

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Year of publication:	2012
Authors:	Guariglia, Alessandra ; Tsoukalas, John ; Tsoukas, Serafeim
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 117.2012, 3, p. 582-584
Publisher:	Elsevier
Subject:	Investment \| Irreversibility \| Cash flow \| Financing constraints

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Type of publication:	Article
Classification:	D21 - Firm Behavior ; E22 - Capital; Investment (including Inventories); Capacity ; E32 - Business Fluctuations; Cycles ; G31 - Capital Budgeting; Investment Policy
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010594188