The Relationship between Firm Investment and Financial Status
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 inte...
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| Veröffentlicht in: | The Journal of finance (New York) 1999-04, Vol.54 (2), p.673-692 |
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| container_end_page | 692 |
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| container_issue | 2 |
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| container_title | The Journal of finance (New York) |
| container_volume | 54 |
| creator | Cleary, Sean |
| description | 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. |
| doi_str_mv | 10.1111/0022-1082.00121 |
| format | Article |
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| fulltext | fulltext |
| identifier | ISSN: 0022-1082 |
| ispartof | The Journal of finance (New York), 1999-04, Vol.54 (2), p.673-692 |
| issn | 0022-1082 1540-6261 |
| language | eng |
| recordid | cdi_proquest_miscellaneous_1282038041 |
| source | Jstor Complete Legacy; Wiley Online Library Journals Frontfile Complete |
| subjects | Business structures Capital structure Cash Cash flow Corporate finance Correlation analysis Dividends Evidence Financial economics Financial investments Financial research Financial status Financial theory Fixed assets Investment Investment decisions Investment plans Liquidity Net income Shorter Papers Studies |
| title | The Relationship between Firm Investment and Financial Status |
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