This paper tests for the importance of cash flow on investment in fixed capital and R&D using firm-level panel data in … investment or R&D. In identical pecifications for British firms, cash flow is informative about investment, although not about … the level of R&D spending conditional on the R&D participation decision. In the UK, we also find that investment is less …

1978-89. These datasets are used to estimate a range of empirical investment equations, and to investigate the role played … the suggestion that financial constraints on investment may be relatively severe in the more market-oriented UK financial …