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 ...

The world economic crisis has affected nearly all industries in recent months with most reporting substantial drop offs in demand. This has forced manufacturers to make major course corrections while they ride out the storm. Some manufacturers are suffering from cash flow problems and are looking for ways to generate quick cash by delaying investments with long return periods. These manufacture...

We investigate the investment-cash flow sensitivity of a large sample of the UK listed firms and confirm that investment is strongly cash flow-sensitive. Is this sensitivity a result of agency problems when managers with high discretion overinvest, or of asymmetric information when managers owning equity are underinvesting if the market (erroneously) demands too high a risk premium? We find tha...

We analyze the risk, return and cash flow characteristics of infrastructure investments by using a unique dataset of deals done by private-equity-like investment funds. We show that infrastructure deals have a performance that is higher than that of non-infrastructure deals, despite lower default frequencies. However, we do not find that infrastructure deals offer more stable cash flows. Our pa...

We investigate the investment-cash flow sensitivity of a large sample of the UK listed firms and confirm that investment is strongly cash flow-sensitive. Is this suboptimal investment policy the result of agency problems when managers with high discretion overinvest, or of asymmetric information when managers owning equity are underinvesting if the market (erroneously) demands too high a risk p...

From the existing literature, it is not clear what effect financing constraints have on the sensitivities of firms’ investment to their cash flow. I propose an explanation that reconciles the conflicting empirical evidence. I present two models: The unconstrained model, in which firms can raise external funds, and the constrained model, in which firms cannot do so. Using low dividends to identi...