Investment-Cash Flow Sensitivities are Useful: A Comment on Kaplan and Zingales

858 citations recorded by the source corpus.

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

Firm Growth and Liquidity Constraints: A Dynamic Analysis (2006, background): “Fazzari et al. (2000), in reply to these criticisms, state that there is a wide range of cases where there is a relationship between cash flow sensitivities and the relative financial constraint of the firm.”
How Costly Is External Financing? Evidence from a Structural Estimation (2007, background): “The interested reader is referred to Fazzari et al. (2000) for a response.”
The determinants of corporate cash management policies: Evidence from around the world (2011, background): “3 See, for example, Kaplan and Zingales (1997, 2000) and Fazzari et al. (2000).”
Trade Credit, the Financial Crisis, and SME Access to Finance (2013, neutral): “This ratio is defined as cash flow in relative terms to the proportion of capital at the end of the previous year (Kaplan and Zingales, 1997, 2000; Fazzari et al. , 2000)”
Credit channel, trade credit channel, and inventory investment: Evidence from a panel of UK firms (2006, background): “Financially distressed firms might also be required by the ir creditors to use their cash flow to meet interest payments and/or improve the liquidity of their balance sheet (Fazzari et al., 2000; Huang, 2002; Allayannis and Monumbar, 2004; Cleary et al., 2004).”
The Cash Flow Sensitivity of Cash (2004, neutral): “(1988), Fazzari and Petersen (1993), and Calomiris et al.”