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Investitionsverhalten und Liquiditätsrestringiertheit. Eine Sensitivitätsanalyse / Investment Behaviour and Liquidity Constraints. A Sensitivity Analysis

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  • Behr Andreas

    ()

  • Bellgardt Egon

    () (Johann Wolfgang Goethe-Universität Frankfurt am Main, FB Wirtschaftswissenschaften, Institut für Statistik und Mathematik, Mertonstraße 17, Postfach 111932, D-60054 Frankfurt am Main)

Abstract

Several empirical papers find that firms a priori classified as liquidity constrained exhibit greater sensitivity of investment to cash flow than those classified as unconstrained. In this paper we analyse the robustness of these findings in different ways. We use three different methods calculating Tobins Q and four different variables for classification as well as different group sizes. For three classification variables measuring liquidity constraints, we find lower sensitivity of investment to cash flow for unconstrained classified firms. Using different group sizes leads to only minor differences in the results. Calculating Tobins Q as a ratio of two rates of return leads to less significant results than methods using stocks for calculating Q.

Suggested Citation

  • Behr Andreas & Bellgardt Egon, 2000. "Investitionsverhalten und Liquiditätsrestringiertheit. Eine Sensitivitätsanalyse / Investment Behaviour and Liquidity Constraints. A Sensitivity Analysis," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 220(3), pages 257-283, June.
  • Handle: RePEc:jns:jbstat:v:220:y:2000:i:3:p:257-283
    as

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    References listed on IDEAS

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    Keywords

    Investment; liquidity constraints; Tobins Q;

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