The link between investment and finance usually enters the empirical literature in the form of financial constraints … credit market. In this context, the sensitivity of investment with respect to single internal or external finance indicators … repayment obligations and thus the risk of bankruptcy. If the risk of bankruptcy enters the profit maximization of the firm, the …

Previous studies argued that low investment-cash flow sensitivities of German firms may be caused by dominance of … panel data approach show that the dependence of investment spending on internal funds does not significantly differ between …

In this paper we investigate corporate investment behavior using a large panel of Hungarian firms between 1993 and 2002 …, the effect of user cost changes on investment is significant and robust across several specifications providing strong … evidence against simple sales-accelerator models of investment. Firms' cash-flow proved to be a significant determinant of …

considered here may affect the sensitiveness of investment to cash flow. Large firms, stock market listed firms as well as firms …

In this paper we use balance-sheet data and information on bankruptcy to study the relationship between investment …, financial constraints, and bankruptcy in a posttransition country. Our data constitute a dynamic panel and cover the period 2006 …-2011, which also allows us to study the impact of the 2008 crisis on Czech companies. Using investment-cash flow sensitivity to …

?s Investment Tests (IT) during the years 1988-1998, we create a panel with information on investment, innovation activity and … financing conditions. Financial constraints affect the distribution of investment over time in a fundamental way. Following a … on Schworm?s (1980) model of optimal investment under financial constraints, we use it to test the empirical content of …

firm's capital investment with respect to investment opportunity. As a direct measure for the productivity of banks, we … the past three decades. The panel estimations for an extended investment equation based on Q-theory show, in a … to capital investment opportunities, provided that these firms hold close relationships with a high performance bank …

uncertainty using options contracts. VAR analysis shows that the investment response to an uncertainty shock of average magnitude … in the sample is strong and persistent: the cumulative fall in investment from trend at a one-year horizon ranges 2 …-5.8 percentage points; and it takes between 11/2 and 2 years for investment to return to its trend level. Empirical ranges depend on …

This paper investigates how firms manage their cash savings, financing, and investment when aggregate uncertainty is …, investment irreversibility, and time-varying risk premia. In my model, firms have a precautionary-savings motive and real options …

accelerator specification of investment demand augmented by the liquidity ratio and a firm specific user cost of capital. The … significant for young firms due mainly to the fact that young firms rely more heavily on sales to increase investment. In general … it is found that firms can reduce the sensivity of investment to their liquidity position by building lending …