The relationship between firm investment and financial status

• 成果类型: Article
• 署名作者: Cleary, S
• 署名单位: Saint Marys University - Canada
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/0022-1082.00121
• 发表日期: 1999
• 页码: 673-692
• 关键词: cash flow; liquidity constraints; AGENCY COSTS; panel data; fluctuations; INFORMATION

摘要

Firm investment decisions are shown to be directly related to financial factors. Investment decisions of firms with high creditworthiness (according to traditional financial ratios) are extremely sensitive to the availability of internal funds; less creditworthy firms are much less sensitive to internal fund availability. This large sample evidence is based on an objective sorting mechanism and supports the results of Kaplan and Zingales (1997), who also find that investment outlays of the least constrained firms are the most sensitive to internal cash flow.