Long-term investment sensitivity to cash flow and financial crisis

Maurizio La Rocca , Raffaele Staglianò (1) , Issam Laguir (1)

1 MRM - Montpellier Research in Management

This study examined investment–cash flow sensitivity in unconstrained and constrained firms from 1980 to 2010 in a sample of Italian manufacturing firms. Investment sensitivity to cash flow decreased over time, and financially constrained firms showed little difference in the decline compared with unconstrained firms. Last, investment sensitivity to cash flow increased during the financial crisis of 2008.

Mots clés: financial constraints; financial crisis; G30; G31; G32; investment; Investment\textendashcash flow sensitivity

Domaines: Économie et finance quantitative [q-fin]

Maurizio La Rocca, Raffaele Staglianò, Issam Laguir. Long-term investment sensitivity to cash flow and financial crisis. Applied Economics Letters, 2016, 23 (6), pp.411-414. ⟨10.1080/13504851.2015.1078437⟩. ⟨hal-02012303⟩