Ding, Sai; Guariglia, Alessandra; Knight, John - In: Journal of Banking & Finance 37 (2013) 5, pp. 1490-1507
linkages between investment in fixed and working capital and financing constraints. We find that those firms characterized by … high working capital display high sensitivities of investment in working capital to cash flow (WKS) and low sensitivities … of investment in fixed capital to cash flow (FKS). We then construct and analyze firm-level FKS and WKS measures and find …