The impact of negative cash flow and influential observations on investment–cash flow sensitivity estimates

By George Allayannis, A. Mozumdar. 2004

323 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/1dfdde19a2403a950aefffeb5f5b87cedf55dd87

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Citations in the corpus

Financial flexibility, corporate investment and performance: evidence from financial crises (2013, unknown): “As Allayannis and Mozumdar (2004) and Bhagat et al. (2005) also suggest, negative cash flow observations may bias the results of an investment model.”
Internal financial constraints, external financial constraints, and investment choice: Evidence from a panel of UK firms. (2008, background): “A heated debate followed (Cleary, 1999; FHP, 2000; KZ, 2000; Allayannis and Mozumdar, 2004; Cleary et al., 2007). The different conclusions reached by these two groups of authors can be explained by the different ways in which they measured financial constraints. On the one hand, most studies that h”
Exporters, Importers and Credit Constraints (2015, unknown): “Allayannis and Mozumdar (2004) use total assets.”
Investment and internal finance: Asymmetric information or managerial discretion? (2006, background): “Allayannis and Mozumdar (2004) restore the initial FHP interpretation.”
Institutional Investment Horizon and Investment-Cash Flow Sensitivity (2012, methodology): “10 We estimate firm fixed effects regressions following prior research (e.g., Fazzari et al., 1988; Cleary, 1999; Kaplan and Zingales, 1997; Allayannis and Mozumdar, 2004).”
NO DEEP POCKETS: SOME STYLIZED EMPIRICAL RESULTS ON FIRMS' FINANCIAL CONSTRAINTS (2010, unknown): “However, Allayannis and Mozumdar (2004) present an explanation for Cleary’s (1999) and Kaplan and Zingales’ (1997) argument that investment is more sensitive to cash flow for less constrained firms – influential observations for Kaplan and Zingales and negative cash-flow observations for Cleary.”
Investment and internal funds of distressed firms (2005, background): “Because the degree of financial constraint is not observable, different papers use different proxies for financial constraints and obtain different cash flow (1)Papers providing support to Fazzari, Hubbard, Petersen (1988) include Allayannis and Mozumdar (2004),”
Why has the investment-cash flow sensitivity declined so sharply? Rising R&D and equity market developments (2009, unknown): “The only other studies to examine the ICF sensitivity over relatively long periods of time are Allayannis and Mozumdar (2004) and Agca and Mozumdar (2008), both of which show a substantial decline in the ICF sensitivity for physical investment over time.”
CORPORATE HEDGING AND SHAREHOLDER VALUE (2010, background): “Likewise, there is strong support for the hypothesis that companies using derivatives exhibit a lower sensitivity of investment to pre-hedging cash flows (Allayannis and Mozumdar, 2004).”
Financing constraints, R&D investments and innovative performances: new empirical evidence at the firm level for Europe (2016, background): “In both its standard formulations and later refinements, this analytical framework has been able to provide confirmation of financing constraints to physical investments in different contexts (e.g. Hu and Schiantarelli, 1998; Allayannis and Mozumdar, 2004; Almeida and Campello, 2007).”
Cash Flow Sensitivities and the Allocation of Internal Cash Flow (2014, unknown): “For example, Allayannis and Mozumdar (2004) argue that firms with negative cash flow are able to make only essential investments, so that any further cutback in investment in response to further declines in cash flow becomes infeasible.”