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 …

The strong positive relationship between corporate cash flow and investment has been interpreted through the lens of … rights to tracts of federal land. We find the standard positive relationship between investment and cash flow in this data … these leases. Interestingly, the increased investment comes from an increase in the price paid per tract with little to no …

Kaplan and Zingales [1997] provide both theoretical arguments and empirical evidence that investment-cash flow …

This paper examines the importance of financial constraints for firm investment expenditures by looking at the … relationship between investment expenditures and proceeds from voluntary asset sales in financially healthy US manufacturing … companies. Specifically, we examine whether asset sales have a greater influence on investment expenditures for firms that are …

This paper investigates the sources of the correlation between corporate cash flow and investment by undertaking an in … investment-cash flow sensitivity. We find that in only 15% of firm-years is there some question as to a firm's ability to access … internal or external funds to increase investment. Strikingly, those firms that appear less financially constrained exhibit a …

We develop a model of investment with financial constraints and use it to investigate the relation between investment … between q and investment, relative to the frictionless benchmark. We present a calibrated version of the model, which, due to … this effect, generates realistic correlations between investment, q, and cash flow …

investment during early industrialization. Although several manufacturing industries, such as cotton textiles, depart from the …

investment in research and development (R&D) have been largely based on retrospective statistical analyses of firm- and … pharmaceutical price controls will significantly diminish the incentives to undertake early-stage R&D investment. For example, we …