Reappearing Investment-Cash Flow Sensitivities

Research output: Contribution to conferenceOtherpeer-review

Abstract

According to previous research the investment-cash flow sensitivity has fallen over time to levels approaching zero in the 2000s, prompting some researchers to argue that the sensitivity cannot be a reasonable measure of financing constraints. We show that differences in sensitivities reappear if one sorts firm according to firms’ need for funding (investment rates) and the cost of external funding (leverage ratios). High capex-high leverage firms consistently have higher sensitivities, even throughout the 2000s.
Original languageEnglish
Publication statusPublished - 2018
EventFinancial Management Association European Conference 2018 - Kristiansand, Norway
Duration: 2018 Jun 14 → …

Conference

ConferenceFinancial Management Association European Conference 2018
Country/TerritoryNorway
CityKristiansand
Period2018/06/14 → …

Subject classification (UKÄ)

  • Business Administration

Fingerprint

Dive into the research topics of 'Reappearing Investment-Cash Flow Sensitivities'. Together they form a unique fingerprint.

Cite this