What Drives Negative Investment-Cash Flow Sensitivities? Revenue Effect Versus Corporate Life-Cycle Dynamics
نویسندگان
چکیده
Abstract In order to identify the economic driver of negative investment-cash flow sensitivities (ICFS), we derive testable predictions from extending a theoretical investment model with endogenous financing costs (“revenue effect”) and contrast them corporate life-cycle hypothesis. We find that firms (i) lower levels long-term debt display stronger ICFS, (ii) more risky revenues invest more, which contradicts revenue effect. At same time strongly ICFS are (iii) smaller, (iv) younger (v) have higher growth opportunities, is consistent
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ژورنال
عنوان ژورنال: Schmalenbach Journal of Business Research
سال: 2023
ISSN: ['2366-6153', '0341-2687']
DOI: https://doi.org/10.1007/s41471-023-00164-0