Internationalization and investment-cash flow sensitivity: Evidence from Taiwan

The primary goal of this study was to investigate how the degree of internationalization affects firms' investment-cash flow sensitivity (ICFS) using a sample of Taiwanese listed firms. Our empirical results indicate that a higher degree of internationalization tends to lower its ICFS. Moreover, our findings also suggest that there is no significant difference between group-affiliated firms and unaffiliated firms in the relationship between internationalization and firms' ICFS. The findings contribute to the financial literature by clarifying internationalization, ICFS and business groups. (C) 2018 College of Management, National Cheng Kung University. Production and hosting by Elsevier Taiwan LLC. All rights reserved.