We examine whether the cash flow sensitivity of is asymmetric using a sample 745 firms from understudied African countries over period 2000–2015. hypothesise and find significant asymmetry in conditional on financial constraints. Firms with positive save while those negative dissave. These differences are more apparent presence Our results affirm highlight severity impact constraints corporate ...

I grate thank was p G12 Asset Pricing Each company faces day to day investment opportunities. Just by staying in business the company is taking a decision of reinvesting. These oportunities have to be fairly valued to overcome misallocation of resources. When a company has a contingent cash flow (growth option), and under particular circumstances this stream of cash flow is valued using the dis...

We consider optimal hedging decisions for a firm whose stock returns are affected by market returns and an idiosyncratic factor that is orthogonal to the market return. We show that the level of firm’s cash flows depend on the level of the market and the level of the idiosyncratic factor multiplicatively because of compounding. Minimizing the variance of the cash flow requires a substantial off...