The paper explores the investment behaviour of German firms in the context of the Q-approach, which plays a dominant role in empirical investment research. The analysis is based on the Deutsche Bundesbank's corporate balance sheet statistics. The panel data set contains some 2,300 German firms'...

Zusammenfassung In verschiedenen empirischen Arbeiten wird für a priori als nicht liquiditätsrestringiert klassifizierte Unternehmen ein signifikant geringerer Einfluß des Cash Flow auf die Investitionstätigkeit festgestellt. In diesem Artikel wird der Frage nach der Sensitivität dieser...

Summary We analyse the investment behaviour of German firms within the framework of the Q-theory. Because we use anonymous individual firm balance sheet data, no stock market measure of Q is available. The data set contains 1,342 manufacturing firms covering the period 1987 to 1998. Using the...

Several empirical papers find that firms a priori classified as liquidity constrained exhibit greater sensitivity of investment to cash flow than those classified as unconstrained. In this paper we analyse the robustness of these findings in different ways. We use three different methods...

We analyse the investment behavior of German firms within the framework of the Q-theory. Because we use anonymous individual firm balance sheet data, no stock market measure of Q is available. The data set contains 1,342 manufacturing firms covering the period 1987 to 1998. Using the approach of...