Investment and Cash Flow: New Evidence

被引：88
|
作者：
Lewellen, Jonathan [1 ]
Lewellen, Katharina [1 ]
机构：
[1] Dartmouth Coll, Tuck Sch Business, Hanover, NH 03755 USA
来源：
JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS | 2016年 / 51卷 / 04期
关键词：
FINANCIAL CONSTRAINTS; MEASUREMENT ERROR; SENSITIVITIES; DECISIONS; STOCK;
D O I：
10.1017/S002210901600065X
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We study the investment-cash flow sensitivities of U.S. firms from 1971-2009. Our tests extend the literature in several key ways and provide strong evidence that cash flow explains investment beyond its correlation with q. A dollar of current-and prior-year cash flow is associated with $0.32 of additional investment for firms that are the least likely to be constrained and $0.63 of additional investment for firms that are the most likely to be constrained, even after correcting for measurement error in q. Our results suggest that financing constraints and free-cash-flow problems are important for investment decisions.
引用
收藏
页码：1135 / 1164
页数：30
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