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 …

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 …

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 …

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 …

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

companies. I test the joint hypothesis that 1) a decrease in cash/collateral decreases investment, holding fixed the … profitability of investment, and 2) the finance costs of different parts of the same corporation are interdependent. The results … support this joint hypothesis: oil companies significantly reduced their non-oil investment compared to the median industry …

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 …

measures of liquidity on the investment decisions of U. K. firms. These variables are introduced via an extension of the Q … model of investment which explicitly includes agency/financial distress costs. We discuss if the significance of cash flow …

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