We examine firms' simultaneous choice of investment, debt financing and liquidity in a large sample of US corporates … future shortfalls in operating income. In contrast to earlier work, our joint estimation approach shows that cash flows … affect the corporate decisions of unconstrained firms more strongly than those of constrained firms. Investment-cash flow …

explore corporate data to investigate how economic uncertainty affected investment, dividend payouts and cash holdings, based … of England. These data demonstrate that heightened economic uncertainty lowered investment even after controlling for … investment opportunities, sales growth, and the firm's own stock volatility. Economic uncertainty also explains the rise in cash …

shocks to their borrowing cost. It develops a dynamic model of corporate investment and financing decisions subject to real … size distribution and replicates the untargeted negative relationship between firm size and investment rates and cash … holdings. Cash holdings help firms sustain investment when access to debt becomes costly or restricted. However, a shock to …

Cash holdings at the onset of a financial crisis are a key determinant of investment by SMEs not only during the crisis … persistent and growing investment gap. The amplification effect was present for SMEs with both volatile and stable cash holdings …

. At the same time, higher gross corporate saving have not supported a commensurate increase in fixed capital investment …

financial crisis and especially so during the recovery phase. This resulted in a persistent and growing investment gap between …

investment-cash flow sensitivity. First, we find that substitutability between reserved cash holdings and internal free cash flow … confirm that the level of net external financing can also partially explain the investment-cash flow puzzle. Lastly, by … examining the relationship between bank dependency and investment-cash flow sensitivity for recession and non-recession periods …

This paper studies the relationship between investment volatility, capital structure, and cash levels. Our evidence … suggests: i) firms with relatively high realizations of future investment volatility hold relatively low levels of debt and … high levels of cash, ii) firms fund large investment by increasing (issuing) debt and/or decreasing (using) cash, iii …