one, Tobin's Q is informative about the firm's growth prospects. We show that investment is positively related to Tobin …, cash flow has a positive effect on investment, and this effect is larger for smaller, faster growing and more volatile … cast doubt on evidence of financing constraints based on cash flow effects on investment …

This paper examines the relevance of institutional investors' investment horizon, as reflected in the response of firm … investment to internal cash flows. We argue that institutional investors with longer investment horizons have greater incentives …' investment outlays to internal cash flows decreases in the presence of institutional investors with long-term investment horizons …