IDEAS home Printed from https://ideas.repec.org/a/mcb/jmoncb/v27y1995i3p683-701.html
   My bibliography  Save this article

International Finance and Firm Investment

Author

Listed:
  • Hubbard, R Glenn
  • Kashyap, Anil K
  • Whited, Toni M

Abstract

The authors examine the neoclassical investment model using a panel of U.S. manufacturing firms. The standard model with no financing constraints cannot be rejected for firms with high (presample) dividend payouts. However, it is decisively rejected for firms with low (presample) payouts (firms the authors expect to face financing constraints). Here, investment is sensitive both to firm cash flow and macroeconomic credit conditions, holding constant investment opportunities. Sample splits based on firm size or maturity do not produce such distinctions. The latter comparison identifies firms where 'free-cash-flow' problems might be expected to produce correlations between investment and cash flow. Copyright 1995 by Ohio State University Press.

Suggested Citation

  • Hubbard, R Glenn & Kashyap, Anil K & Whited, Toni M, 1995. "International Finance and Firm Investment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(3), pages 683-701, August.
    • Handle: RePEc:mcb:jmoncb:v:27:y:1995:i:3:p:683-701
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0022-2879%28199508%2927%3A3%3C683%3AIFAFI%3E2.0.CO%3B2-3&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mcb:jmoncb:v:27:y:1995:i:3:p:683-701. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley-Blackwell Digital Licensing or Christopher F. Baum (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.