Investment-Cash Flow Sensitivities: Constrained Versus Unconstrained Firms

By N. Moyen. 2004

617 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/36d299ccd5b0871f9b5e818bef0314c3e3bd0b41

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Citations in the corpus

R&D sensitivity to asset sale proceeds: New evidence on financing constraints and intangible investment (2013, methodology): “Specifically, our primary tests are based on the sensitivity of firm investment in intangible capital (research and 1 For example, see Kaplan and Zingales (1997), Erickson and Whited (2000), Alti (2003), Moyen (2004), and Chen and Chen (2011).”
Innovative Capability and Financing Constraints for Innovation: More Money, More Innovation? (2012, positive): “Kaplan and Zingales (1997, 2000) first questioned whether the relationship between cash flow and investment is a sufficient indication of financial constraints (see also Cleary, 1999, Fazzari, Hubbard, & Petersen, 2000; Aydogan, 2003; Moyen, 2004).”
Testing Q theory with financing frictions (2007, methodology): “However, the 3The investment optimality condition serving as the basis for our regression equation holds for arbitrary b. Moyen (2004) uses numerical optimization to choose the perpetual coupon.”
Supply chain finance, financial constraints and corporate performance: An explorative network analysis and future research agenda (2019, positive): “…the network: = + + NET BAL NET CCC S CCC NET CCC FC CCC NET CCC C CCC _ ln{( _ _ ) ( _ _ ) ( _ _ ) } i i i i i i 2 2 2 (11) Following the approach of Moyen (2004) and Baños-Caballero et al. (2014), we regard focal companies with a degree of balance above (below) the sample median as operating in…”
Capital Structure Dynamics and Transitory Debt (2011, neutral): “We motivate the modeling of a riskless bond from the literature that has focused on adverse selection as a mechanism for credit rationing.”
Underinvestment vs. overinvestment: Evidence from price reactions to pension contributions (2009, result): “Hence, the 22Kaplan and Zingales’s argument is corroborated by the results of the dynamic models in Moyen (2004) and Hennessy and Whited (2007).”
Financial Expertise of Directors (2008, methodology): “22 Using model-generated data, Moyen (2004) shows that firms with low dividends – considered to be more financially constrained in several studies – are in fact more likely to be unconstrained.”
Working capital management, corporate performance, and financial constraints (2014, methodology): “Firms are also categorized according to their cash flow, similar to the approach used by Moyen (2004). She suggests that, unlike the dividends, this variable allows one to focus on the firm’s beginning-of-the-period funds, since dividends also take into account the investment and financial decisions”
FDI and Credit Constraints: Firm Level Evidence in China (2009, background): “…constraints (Fazzari et al., 2000; Allayannis and Muzomdar, 2004; Chirinko and von Kalckreuth, 2003) while others are more doubtful (Gomes, 2001; Moyen, 2002; Alti, 2003).15 As explained by Harrison et al. (2004), most papers which question this methodology relate more directly to the Q-model…”
The Role of Debt and Equity Finance Over the Business Cycle (2012, background): “In a recent paper, Quadrini and Jermann (2005), report a strong negative correlation between net equity and net debt issues.”
Internal financial constraints, external financial constraints, and investment choice: Evidence from a panel of UK firms. (2008, background): “Also see Boyle and Guthrie (2003); Cooper and Ejarque (2001, 2003); Dasgupta and Sengupta (2003); and Moyen (2004) for other theoretical challenges to the hypothesis that a high sensitivity of investment to cash flow can be seen as evidence of financial constraints.”
Investment and internal funds of distressed firms (2005, background): “They find that firms in financial distress but in good economic health decrease their capital expenditures, sell assets at depressed prices, 2 Moyen (2004) also graphs a U-shaped relation between investment and cash flows for unconstrained firms.”
Treating Measurement Error in Tobin’s Q (2011, neutral): “Recent advances in dynamic theory have demonstrated that these coefficients are hard to interpret because they can stem from many different sources, only one of which is finance constraints (Gomes 2001; Moyen 2004; Hennessy and Whited 2007; Abel and Eberly 2011).”