Parent Category: Article
Is the relationship between investment and conditional cash flow volatility ambiguous, asymmetric or both?
|Title||Is the relationship between investment and conditional cash flow volatility ambiguous, asymmetric or both? ||Author(S)||Michael O'Connor Keefe (Author) |
|Abstract|| We investigate the effect of cash flow volatility on investment. Our evidence suggests that financially constrained firms decrease investment (i) when experiencing persistently high volatility; (ii) when experiencing both high volatility and negative cash flow growth realisations; and (iii) when holding low cash levels and experiencing both high volatility and a negative cash flow growth realisations. In financially unconstrained firms, the above effects are either not found or are of relatively low economic importance ...||Pagination||p 913-947|
|Journal Title||Accounting & Finance|| || |
|Permanent Links||click here|| || |