Investment Irreversibility and Finance Constraints
Abstract
This paper analyzes the investment behavior of firms in the presence of irreversibility and of a dividend payout constraint. Estimation of investment equations for a panel of U.K. firms shows that the Q model performs well over regions of the sample space where neither constraint is likely to be binding. The constraints are able to account for the empirical significance of cash flow variables for the remaining firms in the sample. Copyright 1997 by Blackwell Publishing LtdDownload Info
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Bibliographic Info
Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.
Volume (Year): 59 (1997)
Issue (Month): 1 (February)
Pages: 89-108
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Richard Holt, 2004. "Investment, Irreversibility, and Financial Imperfections," ESE Discussion Papers 54, Edinburgh School of Economics, University of Edinburgh.
- Andrea Caggese, 2001.
"Financing Constraints, Irreversibility, and Investment Dynamics,"
Working Papers
53, Barcelona Graduate School of Economics.
- Caggese, Andrea, 2007. "Financing constraints, irreversibility, and investment dynamics," Journal of Monetary Economics, Elsevier, vol. 54(7), pages 2102-2130, October.
- Andrea Caggese, 2003. "Financing Constraints, Irreversibility, and Investment Dynamics," FMG Discussion Papers dp440, Financial Markets Group.
- Andrea Caggese, 2001. "Financing constraints, irreversibility and investment dynamics," Economics Working Papers 1008, Department of Economics and Business, Universitat Pompeu Fabra, revised Aug 2006.
- Alan Carruth & Andy Dickerson & Andrew Henley, 1998.
"What Do We Know About Investment Under Uncertainty?,"
Studies in Economics
9804, Department of Economics, University of Kent.
- Carruth, Alan & Dickerson, Andrew & Henley, Andrew, 2000. " What Do We Know about Investment under Uncertainty?," Journal of Economic Surveys, Wiley Blackwell, vol. 14(2), pages 119-53, April.
- Mindel van de Laar & Wilko Letterie, 2004.
"The Delaying Effect of Financing Constraints on Investment,"
Bulletin of Economic Research,
Wiley Blackwell, vol. 56(3), pages 271-281, 07.
- Letterie,Wilko & Laar,Mindel,van de, 2003. "The delaying effect of financing constraints on investment," Research Memoranda 004, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization.
- Laar, Mindel van de & Letterie, Wilko, 2004. "The delaying effect of financing constraints on investment," Open Access publications from Maastricht University urn:nbn:nl:ui:27-20493, Maastricht University.
- Alessandra Guariglia & John Tsoukalas & Serafeim Tsoukas, . "Investment, irreversibility, and financing constraints in transition economies," Discussion Papers 10/03, University of Nottingham, School of Economics.
- Richard Holt, 2004.
"Investment and Dividends under Irreversibility and Financial Constraints,"
ESE Discussion Papers
55, Edinburgh School of Economics, University of Edinburgh.
- Holt, Richard W. P., 2003. "Investment and dividends under irreversibility and financial constraints," Journal of Economic Dynamics and Control, Elsevier, vol. 27(3), pages 467-502, January.
- López Martín, Mª Del Carmen & Rodero Franganillo, Adolfo, 2005. "Los activos de las instituciones de inversión colectiva de carácter financiero/Assets by Financial Institutions for Collective Investment," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 23, pages 93-124, Abril.
- Lensink, R. & Sterken, Elmer, 1999.
"Capital market imperfections, uncertainty and corporate investment in the Czech Republic,"
Research Report
99E51, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
- Lensink, Robert & Sterken, Elmer, 2000. " Capital Market Imperfections, Uncertainty and Corporate Investment in the Czech Republic," Economic Change and Restructuring, Springer, vol. 33(1-2), pages 53-70.
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