Results 221 to 230 of about 2,409 (264)

Corporate Legitimacy and Investment-Cash Flow Sensitivity

SSRN Electronic Journal, 2013
This study provides novel evidence of the impact of corporate social responsibility (CSR) on investment sensitivity to cash flows. We posit that CSR affects investment–cash flow sensitivity (ICFS) through information asymmetry and agency costs, commonly viewed as the two channels through which investment responds to the availability of internal cash ...
Najah Attig, Sean W. Cleary, Sadok El Ghoul, Omrane Guedhami   +3 more
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Investment, Cash Flow, and Sunk Costs

The Journal of Industrial Economics, 1995
This paper's analysis of U.S. manufacturing industries confirms previous research showing that cash flow and investment spending are positively correlated, even after controlling for investment demand, and it makes two new points as well: firstly, that the effect of cash flow on investment is greater for durable goods industries than for nondurable ...
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Cash Flow, Investment, and Hedging

2000
Using a sample of S&P 500 non-financial firms between 1993 and 1995, we examine whether the use of foreign currency derivatives by firms with significant exposure to exchange-rate risk enables them to reduce their dependence on internal cash flow for making investments, as predicted by Froot, Scharfstein, and Stein's (1993) model of optimal hedging.
George (Yiorgos) Allayannis, Abon Mozumdar   +1 more
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Investment, cash flow, and corporate hedging

Journal of Corporate Finance, 2005
Abstract We examine the underinvestment rationale for corporate hedging and test the hypothesis that if firms hedge to reduce both their reliance on external funds and the volatility of internal cash flow, then their investment spending should be less sensitive to prehedged cash flow.
Sanjay Deshmukh, Stephen C. Vogt
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Derivative cash flows and corporate investment

Journal of Banking & Finance, 2020
Abstract According to an influential argument, corporate hedging supports corporate investment when internal cash flows are volatile and external financing is costly (Froot, Scharfstein and Stein, 1993). Despite its vast influence, the predictions of this theory have not yet been directly tested using actual derivative cash flows.
Håkan Jankensgård, Reda M. Moursli
openaire   +1 more source

Investment and Cash Flow: New Evidence

Journal of Financial and Quantitative Analysis, 2016
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 ...
Jonathan Lewellen, Katharina Lewellen
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Evidence on the role of cash flow for investment

Journal of Monetary Economics, 1995
Abstract Recent work in macroeconomics argues that imperfections in capital markets may lead to business cycle fluctuations by propagating relatively modest shocks. Evidence for such a mechanism (also known as the ‘financial accelerator’) consists largely of firm-level studies showing that cash flow is an important predictor of investment.
Simon Gilchrist, Charles P. Himmelberg
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Aggregate Return on Investment and Investment Decisions: A Cash-Flow Perspective

The Engineering Economist, 2011
The recent notion of average internal rate of return (AIRR; Magni 2010a, The Engineering Economist, 55(2), 150–180) completely solves the long-standing problem of the internal rate of return (IRR). Though the AIRR is a return measure, this article presents a cash-flow measure, namely, the ratio of net cash flow (i.e., cash inflows minus cash outflows ...
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A Free Cash Flow Investment Anomaly

Journal of Accounting, Auditing & Finance, 2000
This paper examines an investment strategy based on free cash flows. The strategy selects securities into a “long” portfolio that outperforms the market index, returns of similar size securities, and returns of similar risk (beta and book-to-market) securities.
Kenneth S. Hackel, Joshua Livnat, Atul Rai   +2 more
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The Determinants of Investment-Cash Flow Sensitivity

SSRN Electronic Journal, 2006
Using firm-level estimates of investment-cash flow sensitivity, I classify firms into groups of high, low, and negative sensitivity. I find that investment-cash flow sensitivity is non-monotonic with respect to financial constraints, cash flows, and growth opportunities. Specifically, firms with negative cash flow sensitivity have the lowest cash flows
openaire   +1 more source