Fundamental q, cash flow, and investment: Evidence from farm panel data

• 成果类型: Article
• 署名作者: Bierlen, R; Featherstone, AM
• 署名单位: University of Arkansas System; University of Arkansas Fayetteville; Kansas State University
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/003465398557663
• 发表日期: 1998-08
• 页码: 427-435
• 关键词: liquidity

摘要

This study used a 1976-1992 panel data set to test whether farm machinery investors face finance constraints. Tests were based on fundamental q investment equations in which cash flow was added as an additional explanatory variable. Results indicated that (1) credit constraints were generally not a problem during the 1970s boom, (2) credit constraints became a problem during the 1980s and early 1990s because of tighter credit and/or more conservative financial managerial styles, (3) the investment-cash flow relationships of low-debt and older-operator farms were not significantly affected by farm business cycles, and (4) the investment-cash flow relationships of high-debt and young-operator farms were affected strongly by business cycles. Debt level was the strongest determinant of credit constraints; asset size and operator age were less important.