Dasgupta, Sudipto; Noe, Thomas H.; Wang, Zhen - In: Journal of Financial and Quantitative Analysis 46 (2011) 05, pp. 1259-1294
This paper documents the short- and long-term balance sheet effect of cash flows. We show that cash savings in the short run and debt reduction in both the short and the long run account for a substantial fraction of cash flow use. Although, in the long run, investment exhibits substantial...